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AFP Certified Treasury Professional CTP Question # 370 Topic 14 Discussion

AFP Certified Treasury Professional CTP Question # 370 Topic 14 Discussion

CTP Exam Topic 14 Question 370 Discussion:
Question #: 370
Topic #: 14

A call option for a company has an exercise price of $50. The stock is currently trading at $60. At maturity, what should an investor who paid $3 for the option do?


A.

Exercise the option and gain $7.


B.

Exercise the option and gain $10.


C.

Not exercise the option and lose $3.


D.

Not exercise the option and lose $13.


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