SnoopyBoy2321 SnoopyBoy2321

03-04-2024
Business

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A call option with E = $25 expires in-the-money with intrinsic value of $4. If you paid $5 to buy the option, how much is your profit? Should this call option be exercised?
a) $1; Yes
b) -$1; No
c) $4; Yes
d) -$1; Yes

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