ABC stock is currently priced at $31.42 a share. The three-month calls have a strike price of $30.00 and a market price of $2. If Mary purchases the call today and then exercises the option next week,
How much will she have spent for each share of stock she purchased?
A) $30.00
B) $30.02
C) $31.42
D) $31.44
E) $32.00

Question

Quizplus · Accepted Answer

Mary will spend $2 for the call option and $30 to exercise it, totaling $32 per share.

ABC Stock Is Currently Priced at $31