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Deeble Construction Co.’s stock is trading at $30 a share. Call
options on the company’s stock are also available, some with a strike
price of $25 and some with a strike price of $35. Both options expire in
three months. Which of the following best describes the value of these
options?
Question 11
2 out of 2 points
Which of the following statements is CORRECT?
Question 12
Warner Motors’ stock is trading at $20 a share. Call options that
expire in three months with a strike price of $20 sell for $1.50. Which
of the following will occur if the stock price increases 10%, to $22 a
share?