At what stock price will the options be in the money at


You are considering purchasing 500 call options on the common stock of The Big Candy Store, Inc. The stock is currently trading at $52.00 per share. The 3-month option can be purchased for $2.75 per share, and has an exercise price of $56.00.

i. At what stock price will the options be in the money?

ii. At what stock price will the option produce a profit?

iii. Assuming the stock is trading at $58.52 at the time of expiration of the option, what is the payoff? What is the profit/loss?

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Financial Management: At what stock price will the options be in the money at
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