Circle stores stock is priced at 28 a share a 40 call on, Ask an Expert

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Circle Stores stock is priced at $28 a share. A $40 call on this stock has five months until expiration and a call price of $0.15. Based on the concepts covered in this chapter, why do you think an investor purchase a call that is so far out of the money?

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Financial Management, Finance

Category:- Financial Management
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