Question: AGEC 415 Homework #5 Please attach work if you want full credit! 1. Suppose that a call option to buy a share for $35.00 costs

AGEC 415 Homework #5 Please attach work if you
AGEC 415 Homework #5 Please attach work if you want full credit! 1. Suppose that a call option to buy a share for $35.00 costs $1.50 and is held until maturity. Under what circumstances will the holder of the option make a profit? Under what circumstances will the option be exercised? Draw a diagram illustrating how the profit from this option depends on the stock price

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