Assume That a $60 Strike Call Pays a 1

Assume that a $60 strike call pays a 1.0% continuous dividend,r = 0.05,σ = 0.28,and the stock price is $62.00.What is the profit or loss per share if on a long call position,with 73 days until expiration,the price immediately rises to $63.00?

A) $0.68 gain
B) $0.68 loss
C) $0.88 gain
D) $0.88 loss

Correct Answer:

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