7. The cuurent market price of a share of BCE storck is $50 . If a call option on this stock has a strike price of $45 the call: a. is out of the money b. is in the money c. sells for a higher price than if the market price of BCE stock is $0 d. a and c. e. b and c

7. The cuurent market price of a share of BCE storck is $50 . If a call option on this stock has a strike price of $45 the call: a. is out of the money b. is in the money c. sells for a higher price than if the market price of BCE stock is $0 d. a and c. e. b and c

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 2P: The exercise price on one of Flanagan Companys call options is 15, its exercise value is 22, and its...

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7. The cuurent market price of a share of BCE storck is $50 . If a call option on this stock has a strike price of $45 the call:

a. is out of the money

b. is in the money

c. sells for a higher price than if the market price of BCE stock is $0

d. a and c.

e. b and c

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