How much will your total option payoff be

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Problem: You are considering buying an exchange-traded European call option on ABC Inc. stock that expires 3 months from now, has a strike price of $100, and the underlying asset of the call option is 100 shares of ABC Inc. stock. If the current quoted price of the call option is $5, how much do you need to spend to buy that option right now, and how much will your total option payoff be if the ABC Inc. stock price is $110 at expiration.

Reference no: EM133615900

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