You Are Currently Holding a Call Option on a Stock

question 22

Multiple Choice

You are currently holding 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 will be:

• A) -$20.
• B) $0.
• C) $20.
• D) $60.

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Definitions:

Self-understanding

Awareness and knowledge of one’s own character, feelings, motives, and desires, contributing to personal growth and development.

Coerced

Forced to act or think in a certain way through pressure or threats.

Self-evaluation Trap

A psychological state in which an individual's constant self-assessment leads to negative feelings and a decrease in motivation or self-worth.

Feedback

Information given to an individual or group about their performance or behavior with the intention of improving future actions.