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Business, 13.08.2021 02:20 heroicblad

Suppose a stock is priced at $50. You are bullish on the stock and are considering buying March calls with an exercise price of $45 and $55, respectively. The 45 call is priced at $8.50 and the 55 call is quoted at $2.75. What should you consider in deciding which to purchase if you do not plan on exercising prior to maturity?

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Suppose a stock is priced at $50. You are bullish on the stock and are considering buying March call...
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