Sam Owns a Call Option on a Stock and on the Expiration

question 7

Multiple Choice

Sam owns a call option on a stock and on the expiration date the stock price exceeds the strike price in the option contract, so Sam will:

• A) let the option expire without exercising the option.
• B) exercise the option and buy the stock at the strike price and hold it in his portfolio.
• C) exercise the option and buy the stock at the strike price and immediately resell it at the market price.
• D) buy the stock at the market price and then exercise the option by selling the stock at the strike price.

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Definitions:

Left Main Coronary Artery

A primary artery that supplies blood to the left side of the heart, crucial for providing oxygen-rich blood to the heart muscle.

Calcium-induced Calcium Release

A cellular mechanism where the influx of calcium ions triggers the release of additional calcium from the intracellular stores.

Great Vessels

The major arteries and veins connected directly to the heart, responsible for transporting blood to and from the body's organs.

Peripheral Chemoreceptors

Sensory receptors located in the carotid and aortic bodies that detect changes in the chemical composition of blood, including oxygen and carbon dioxide levels.