If the Owner of a Call Option with a Strike

question 105

Multiple Choice

If the owner of a call option with a strike price of $35 finds the stock to be trading for $42 at expiration, then the option:

• A)expires worthless.
• B)will not be exercised.
• C)is worth at least $7 per share.
• D)cost too much initially.

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Definitions:

Consignment

A process in which an exporter sends goods to an importer without transferring ownership.

Ownership

The legal right or state of having control over something, such as property, assets, or a business.

Exporter

An exporter is a person or company that sells goods or services to buyers in another country, contributing to international trade and economic growth.