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What minimum stock price will the option buyer exercise

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Reference no: EM133011560

Dexus Property Group shares currently trade at $9.10. An investor enters into a call option on Dexus Group shares with an exercise price of $9.30 per share in two months, and a premium of $0.25 per share.

Problem a. Define an option and explain the premium and the exercise price.

Problem b. What is a call option?

Problem c. At what minimum stock price will the option buyer exercise the option on the expiration date?

Reference no: EM133011560

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