What conditions does the holder of the option make a profit

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Reference no: EM13952125

Suppose a European call option to buy a share for $22.00 costs $1.50. The stock currently trades for $19.00. 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 $23.50.

B) When the price of the stock is greater than $20.50.

C) When the price of the stock is greater than $22.00.

Reference no: EM13952125

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