Business, 06.11.2019 02:31 1slimeyshyy

After your analysis, you decided to purchase the option for $28.10, which gives you the right to buy abc corp.'s stock at $14.00. if you exercise the option by purchasing the stock at the strike price, you could immediately sell the hare of the stock at its market price of $66.00. this will result in a payoff, and the rate of return will be?

true or false
1. an option's price will always be greater than (or equal to) its exercise price.
2. a call option's payoff (per share) equals the difference between the current stock price and the exercise price.
3. options can be created and traded without an underlying asset.

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After your analysis, you decided to purchase the option for $28.10, which gives you the right to buy...