Multiple Choice
Suppose the price of a share of Google stock is $500. An April call option on Google stock has a premium of $5 and an exercise price of $500. Ignoring commissions, the holder of the call option will earn a profit if the price of the share
A) increases to $504.
B) decreases to $490.
C) increases to $506.
D) decreases to $496.
E) None of the options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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