If you buy an option that gives you the right to buy gold at $1700 an ounce

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If you buy an option that gives you the right to buy gold at $1700 an ounce in one month, but gold is now trading for $1600 an ounce, is that option valuable today? Why or why not?

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Apr 05, 2024 12:27 PM

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If you buy an option that gives you the right to buy gold at $1700 an ounce

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Expert Answer:

Yes the option is valuable today The option youve purchased is a call option w... View the full answer

Corporate Finance

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