The Premium on a Call Option on the Market Index

question 9

Multiple Choice

The premium on a call option on the market index with an exercise price of 1050 is $9.30 when originally purchased.After 2 months the position is closed,and the index spot price is 1072.If interest rates are 0.5% per month,what is the Call Profit?

• A) $9.30
• B) $9.39
• C) $12.61
• D) $22.00

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