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Grants an option to

2. W(the writer) grants an option to H (the holder) under which H may purchase 50 shares of stock of X Corp. from W for $10 per share at any time within six months after the option in written.

Explain what would happen in each of the following situations.

a) X. Corp trades at $14 per share
b) X. Corp trades at $7 per share

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