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What is the consequence of your initial recommendation

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Reference no: EM133522256

Question: Assume the option matures at the expiry date and is a) in the money with a market price 10% above the exercise price, and b) out of the money with a market price 20% below the exercise price. What is the consequence of your initial recommendation? What is the effect for the entity writing the option? What lessons do you draw?

Reference no: EM133522256

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