Multiple Choice
Suppose the price of a share of IBM stock is $200. An April call option on IBM stock has a premium of $5 and an exercise price of $200. Ignoring commissions, the holder of the call option will earn a profit if the price of the share
A) increases to $204.
B) decreases to $190.
C) increases to $206.
D) decreases to $196.
E) None of the options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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