What will the total payoff per share be

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Reference no: EM131933821

The XYZ Company expects stock prices to increase. The current stock price is $37. The company purchases a call option, with an exercise price of $40 and a premium of $2 per share. Just before the expiration, stock price rises to $44. Should the investor exercise the call option or not? What will the total payoff per share be?

Reference no: EM131933821

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