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Basic Question 6 of 9
If you own a deep-in-the-money call option on non-dividend-paying stock, you will MOST LIKELY NOT ______.
B. keep the option until later to see if the stock price will go up further
C. exercise the option
A. sell the option
B. keep the option until later to see if the stock price will go up further
C. exercise the option
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Martin Rockenfeldt
Learning Outcome Statements
calculate the no-arbitrage values of European and American options using a two-period binomial model;
identify an arbitrage opportunity involving options and describe the related arbitrage;
CFA® 2025 Level II Curriculum, Volume 5, Module 32.