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What conditions does the holder of the option make a profit

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Reference no: EM132489572

Question 1: Suppose a European call option to buy a share for $120.00 costs $6.00. The stock currently trades for $118.00. If the option is held to maturity under what conditions does the holder of the option make a profit? Note: ignore time value of money.

a. When the price of the stock is greater than $122.

b. When the price of the stock is greater than $120.

c. When the price of the stock is greater than $126.

Reference no: EM132489572

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