Suppose you buy call options on microsoft stock each option, Ask an Expert

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Suppose you buy call options on Microsoft stock. Each option costs $2 and has a strike price of $40 and an expiration date of July 1. Discuss whether you would exercise the options in each of the following situations, and why:

a. It is March 1, and Microsoft's stock price is $30.

b. It is March 1, and the stock price is $40.10.

c. It is March 1, and the stock price is $50.

d. It is June 30, and the stock price is $50.

e. It is June 30, and the stock price is $40.10.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91976723

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