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At what minimum share price will the option buyer exercise

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Reference no: EM133004463

Question - John bought an option contract on BHP shares with an exercise price of $50 and an expiry date in one month. The market price for BHP shares today is $46.82. The call price is trading at $0.35.

At what minimum share price will the option buyer exercise the option on the expiration date? Provide reasoning in the answer.

Reference no: EM133004463

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