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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