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The Premium on a Call Option on the Market Index

Question 9

Multiple Choice

The premium on a call option on the market index with an exercise price of 1050 is $9.30 when originally purchased.After 2 months the position is closed,and the index spot price is 1072.If interest rates are 0.5% per month,what is the Call Profit?


A) $9.30
B) $9.39
C) $12.61
D) $22.00

Correct Answer:

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