At expiry, a holder of a call option with an exercise price of $32 (purchased for a premium of $0.85) over Wesfarmers shares (now trading at $33.65) will:
A) exercise with a profit of $1.65 per share
B) exercise with a profit of $0.80 per share
C) exercise with a profit of $0.85 per share
D) not exercise with a loss of $0.85 per share.
E) None of these.
Correct Answer:
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