Anticipating an apple appreciation you buy a 102016 120, Ask an Expert

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Anticipating an Apple appreciation, you buy a 10/2016 $120 American-style Apple call option for $2.00 today. Being an American-style, you can early exercise it in September.

1) If you early exercise this call in September, what will be the payoff in September?

2) At what Apple price in September will you early exercise? Or, will you ever early exercise it? Explain.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91783610

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