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You Enter into an Exchange Option Contract Where You Have 30- 30

Question 14

Multiple Choice

You enter into an exchange option contract where you have the right to give up 5 shares of IBM stock in exchange for one share of Google in three months. After three months, IBM is trading at $92 per share while Google is at $430. The payoff at maturity is


A) 30- 30 .
B) Zero.
C) +6+ 6 .
D) +30+ 30 .

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