Answer:
Only if the stock price is greater than [tex]\$126.00[/tex]
Explanation:
-Ignoring time value of money, the stock's holder will only make a profit if the stock price at time of maturity is greater than [tex]\$126.00[/tex].
-Price must be greater than total cost ($120+$6) of buying the option.
-The option will not be exercised if the stock price is between $120 and $126. If exercised at these prices, the holder will make a loss.
