Multiple Choice
A stock is selling for $45.75 with a call option available at a $40 strike that has a premium of $7.50. What percentage of the common stock price does the speculative premium represent?
A) 16.39%
B) 14.375%
C) 12.57%
D) 4.38%
E) 3.83%
Correct Answer:
Verified
Correct Answer:
Verified
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