In a Shout Call Option, the Strike Price Is $30

question 3

Multiple Choice

In a shout call option, the strike price is $30. The holder shouts when the asset price is $40. What is the payoff from the option if the final asset price is $35? choose one)

• A) $0
• B) $5
• C) $10
• D) $15

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

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