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A call option for a company has an exercise price of $50.

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A call option for a company has an exercise price of $50. The stock is currently trading at $60. At maturity, what should an investor who paid $3 for the option do?

A.

Exercise the option and gain $7.

B.

Exercise the option and gain $10.

C.

Not exercise the option and lose $3.

D.

Not exercise the option and lose $13.

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