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How do you lock in a sale price

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Question - You purchased a share of non-dividend paying stock at 25 and it has now appreciated to 45. You observe that a 3-month 35-strike European call on the stock is priced at 13 and the effective risk-free interest rate is 5% per year. How do you lock in a sale price of at least 35 for the stock three months from now and how much does it cost?

Reference no: EM133110697

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