Question 20.1: When It Makes Sense to Exercise an Option SITUATION: You own...

Fundamentals of Corporate Finance

When It Makes Sense to Exercise an Option
SITUATION: You own a call option and a put option on a share of Ford Motor Company stock. The exercise price for both of these options is $18 per share, and both options expire today. If the current price of Ford stock is $17, would you exercise either of these options? If so, which one?

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