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What is the exercise value of the call option

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Reference no: EM132803001

Problem - OPTIONS - A call option on Rosenstein Corporation stock has a market price of $7. The stock sells for $31 a share, and the option has an exercise price of $25 a share.

a. What is the exercise value of the call option?

b. What is the premium on the option?

Reference no: EM132803001

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