A Stock Is Selling at $85 at the Expiration of an Option

question 35

Multiple Choice

A stock is selling at $85 at the expiration of an option contract.Which of the following options will most likely be exercised?

• A)Buyer of a call option with exercise price of $65.
• B)Buyer of a put option with exercise price of $65.
• C)Buyer of a call option with exercise price of $80.
• D)Buyer of a put option with exercise price of $85.

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Definitions:

Evidence

Information or facts that are provided or accessible to prove a claim, support an argument, or validate a conclusion.

Jungian Theory

A psychological concept based on the ideas of Carl Jung, focusing on the importance of personal and collective unconscious, archetypes, and the process of individuation.

Substage

A division within a stage, indicating a more detailed or nuanced phase in a developmental or procedural process.

Events

Occurrences or happenings, especially significant ones, that are part of a sequence in a narrative or history.