Early Excercise vs. Selling a Call Option
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Joan Junkus owns IBM call options expiring in 8 weeks. The strike price for her options is $80. The current stock price is $84.45 and the current market price for her option is $7.10. Would she be better off selling her options or exercising her options? Why?
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Solution Summary
The solution examines early exercise versus selling a calling a call option current stock.
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