Which of the following statements about the current value of a short European call option on Warwick plc stock, a non-dividend-paying stock, is/are true?

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A: here  we calculate the given by following method as follow;

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Q: Consider two European call options on the same stock with thesame strike price of $40. One option…

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A:

Q: (i) (ii) Please specify the moneyness of the above options. Are they in the money, at the money, or…

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