Suppose the price of a share of IBM stock is $100.An April call option on IBM stock has a premium of $5 and an exercise price of $100.Ignoring commissions,the holder of the call option will earn a profit if the price of the share
A) increases to $104.
B) decreases to $90.
C) increases to $106.
D) decreases to $96.
E) none of the above.
Correct Answer:
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