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Should Wisconsin exercise the call option

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Problem - Wisconsin, Inc., purchased a call option on Treasury bond futures at a premium of 2-00. The exercise price is 92-08. If the price of the Treasury bond futures rises to 93-08, should Wisconsin exercise the call option or should it let the option expire? What is Wisconsin's net gain or loss after accounting for the premium paid on the option?

Reference no: EM132915319

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