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:

Population Control

Strategies or policies aimed at regulating the growth rate of a population to ensure sustainability and prevent overuse of resources.

Predation

The biological interaction where one organism, the predator, feeds on another organism, its prey.

Brazilian Rain Forest

The Amazon Rainforest in Brazil, which is the largest tropical rainforest in the world, known for its biodiversity.

Population Change

The alteration in the number of individuals in a population due to factors like birth rates, death rates, and migration.