Suppose a european call option to buy a share for 10000, Ask an Expert

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Suppose a European call option to buy a share for $100.00 costs $5.00. The stock currently trades for $97.00. If the option is held to maturity under what conditions does the holder of the option make a profit? Note: ignore time value of money.

A) When the price of the stock is greater than $102.

B) When the price of the stock is greater than $100

C) When the price of the stock is greater than $105

Please explain your answer.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91383464

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