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Chartered Financial Analyst Level 1

Chartered Financial Analyst Level 1

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An investor gathers the following information about a call option:

  • Option premium: $5
  • Exercise price: $25
  • Price of the underlying at initiation: 15Atexpiration,ifthepriceoftheunderlyingis15 At expiration, if the price of the underlying is 15Atexpiration,ifthepriceoftheunderlyingis30, the value of the call option to the call seller is:

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