Six month options outstanding

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Reference no: EM131937887

A stock that is trading at $37 has the following six month options outstanding:

Strike Price Market Price

Call option I $45 $3

Call option II $52 $5

Call option III $58 $1

Which of the following statements is correct?

If I buy 2 calls on Option III and the price of the stock appreciates to $52 in 4 months, I should immediately exercise the option

If I buy a call on Call Option II, the option will be in the money once the price of the stock rises above $52

The intrinsic value of Call Option I is $3

Answer Options I and II

Answer Options I and III

Reference no: EM131937887

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