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Three six-month call options are traded on Digital Organics stock: How would you make money by trading...

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Question

Finance

Three six-month call options are traded on DigitalOrganics stock:

How would you make money by trading in Digital Organicsoptions?

Exercise Price

Call Option Price

$90

$5

$100

$11

$110

$15

Answer & Explanation Solved by verified expert
3.8 Ratings (629 Votes)
1 In case of call options the price of option decreases with the increase in exercise price 2 Because when the exercise price increases the demand for the call    See Answer
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Transcribed Image Text

Three six-month call options are traded on DigitalOrganics stock:How would you make money by trading in Digital Organicsoptions?Exercise PriceCall Option Price$90$5$100$11$110$15

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