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When an Option Is Exercised,the Party Exercising the Option Has

Question 41

Multiple Choice

When an option is exercised,the party exercising the option has a profit equal to:


A) the cash flow resulting from the exercise of the option.
B) the cash flow resulting from the exercise of the option less the premium paid for the option.
C) the premium originally paid for the option.
D) the cash flow resulting from the exercise of the option plus any savings resulting from changes in exchange rates.

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