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Problem:

A stock is currently selling for $25. A 6-month call option on the stock has a strike price of $30 and sells for $0.50.

Required:

Calculate the exercise value of the option?

  • $0.00
  • $4.50
  • $5.00
  • $24.50
  • none of the above

Note: Explain in detail and show all computations in proper way.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91168157

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