You Purchased a Call Option for $3

question 87

Multiple Choice

You purchased a call option for $3.45 17 days ago.The call has a strike price of $45, and the stock is now trading for $51.If you exercise the call today, what will be your holding-period return? If you do not exercise the call today and it expires, what will be your holding-period return?

• A)173.9%, -100%
• B)73.9%, -100%
• C)57.5%, -173.9%
• D)73.9%, -57.5%

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