a.You have only one day left to decide whether to exercise a call option on the Company X stock, which you purchased six months ago for shs. 300 . The call option exercise price is shs 54.

i.) For what range of stock price should you exercise the call on the last day of

the call life?

ii.) For what range of stock price would you realize a loss (including the

premium paid for the call option)?

Answer rating: 100% (QA)

To make an informed decision on whether to exercise a call option you need to consider the profit or ... View the full answer