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Question regarding the strike price

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Reference no: EM131105297

Suppose that on January 2, Microsoft stock is trading for $34 per share. You purchase an option that gives you the right to purchase 100 shares of Microsoft stock for $35 on or before March 15. The option costs $3. On March 15, Microsoft stock is trading for $40 per share. In this scenario, the strike price is:

  • $3
  • $34
  • $35
  • $40

Reference no: EM131105297

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