solution

ABC stock is trading at $20 a share. Call options that expire in three months with a strike price of $20 sell for $1.50. Which of the following will occur if the stock price increases by 10%?

The price of the call option will increase by $2

The price of the call option will increase by more than $2

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The price of the call option will increase by more than $2, but the percentage increase in price will be less than 10%

The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%

 
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