Question: Suppose you buy a call option with a strike price of $75. If the price of the underlying stock at expiration is $90, which of

Suppose you buy a call option with a strike price of $75. If the price of the underlying stock at expiration is $90, which of the following is the best and correct choice?

a) You should receive a payoff of -$15 by exercising the option.

b) You should receive a payoff of $15 by exercising the option.

c) You should receive a payoff of $15 by not exercising the option.

d) You should receive a payoff of zero by not exercising the option.

e) You should receive a payoff of $90 by exercising the option.

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