A 6-month call option on Romer Technologies' stock has a strike price of $41.00 and sells in the market for $8.25.Romer's current stock price is $47.00.What is the exercise value of the option? Do not round your intermediate calculations.
?
A) $6.00
B) $6.06
C) $5.46
D) $7.32
E) $6.66

Question

Quizplus · Accepted Answer

11ea856c_8b28_f1e0_9aec_8b2c86b096f2_TB1222_00 Exercise value = Current price of stock ? Strike price
Exercise value = $47.00 ? $41.00
Exercise value = $6.00
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A 6-Month Call Option on Romer Technologies' Stock Has a Strike