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If a Microsoft January 20 Call Option with a Strike

Question 104

Multiple Choice

If a Microsoft January 20 call option with a strike price of $20 were about to expire and the market price of the underlying Microsoft stock was $25.62,the price of the call option would have to be __________ to eliminate arbitrage opportunities.


A) $5.00
B) $10.00
C) $15.00
D) $25.00
E) none of the above.

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