Call option on the stock

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On May 9, 2015, Glenna purchases 500 shares of Ignaz Company stock for $7,500. On June 30, 2015, she writes a call option on the stock, giving the grantee the right to buy the stock for $9,000 during the following 12-month period. Glenna receives a call premium of $750 for writing the call. The call is exercised by the grantee on December 15, 2015.

Reference no: EM131084250

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