The profit or loss for the holder of a $5 call option (purchased for $0.50) given the share price at expiry is $5.20, will be:
A) zero, because they will not exercise
B) a loss of $0.50, because they will not exercise
C) a loss of $0.30, because they will exercise
D) a profit of $0.20, because they will exercise.
E) None of these are correct.
Correct Answer:
Verified
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