On March 30 You Are Holding a Call Option on a Stock

question 28

Multiple Choice

On March 30 you are holding a call option on a stock (exercise price of $60) ,which will expire on March 31.The closing price of the stock on March 30 is $59.What is the value of your call option?

• A) $1
• B) - $1
• C) Very little
• D) Zero

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Definitions:

Heme

An iron-containing compound that forms the nonprotein part of hemoglobin and some other biological molecules, essential for oxygen transport in the bloodstream.

Anemia

A condition marked by a deficiency of red blood cells or of hemoglobin in the blood, resulting in pallor and weariness.

Iron

A metallic element (Fe), crucial for biological processes and used in making steel and other alloys.

Canines

Sharp, pointed teeth located towards the front of an animal's mouth, used primarily for tearing food.