Call option (example )
Channel: Werner Lost
Date: 2013-01-27

Sally has a call option to buy 800 Wesizwe Platinum shares at R70 a share. It is an American option and expires on 30 April 2013.Explain whether or not she will exercise this option given the following situations:
(i) On 28 February 2013 the price of Wesizwe Platinum shares is R74 per share.
(ii) On 30 March 2013 the price of Wesizwe Platinum shares is R68 per share..
(iii) On 15 May 2013 the price of price of Wesizwe Platinum shares is R72 per share.