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An Investor Holds Long Call Options That May Be Exercised

Question 72

Multiple Choice

An investor holds long call options that may be exercised at any time over the next month.The spot price of the underlying asset is $12.75; the strike price of the option is $15.10; and the premium paid was $2.35.What is the value of the option to the holder?


A) -$2.35
B) zero
C) $10.40
D) $15.10

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