Question
Which of the following is correct for the owner of a call option, valued at 5, on XYZ with a strike price of 65? XYZ
Which of the following is correct for the owner of a call option, valued at £5, on XYZ with a strike price of £65? XYZ currently trades at £55.
1. XYZ is expected to go to £65 per share
2. The option owner's current profit is £5 per share
3. It is not worth exercising this option
4. None of the above
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The detailed answer for the above question is provided below ANSWER 3 It is not worth exercising thi...
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
