You Paid $5 a Call Option on a Stock with an Exercise

question 87

Multiple Choice

You paid $5 a call option on a stock with an exercise price of $80.If the current stock price is $60, your net proceeds by exercising this option and selling the stock will be:

• A)($25).
• B)$0.
• C)$20.
• D)$60.

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Definitions:

Shingles

A viral infection causing a painful rash, often with blisters, that typically appears on one side of the body or face.

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A condition characterized by the narrowing of the coronary arteries, resulting in decreased blood flow to the heart.

Angioplasty

A medical procedure used to widen obstructed or narrowed blood vessels, typically to treat arterial atherosclerosis.

Chemotherapy

is a type of cancer treatment that uses one or more anti-cancer drugs as part of a standardized chemotherapy regimen to kill or slow the growth of cancer cells.