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When the price of the stock is greater

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Reference no: EM132408168

Suppose a European call option to buy a share for $22.00 costs $1.50. The stock currently trades for $19.00. If the option is held to maturity under what conditions does the holder of the option make a profit? Note: ignore time value of money.

Group of answer choices

a. When the price of the stock is greater than $23.50.

b. When the price of the stock is greater than $22.00.

c. When the price of the stock is greater than $20.50.

Reference no: EM132408168

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