You Paid $5 a Call Option on a Stock with an Exercise

question 87

Multiple Choice

You paid $5 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 and selling the stock will be:

• A)($25).
• B)$0.
• C)$20.
• D)$60.

---

Definitions:

Acknowledge Support

Involves recognizing and expressing gratitude for the assistance or encouragement received from others.

Concessions

Compromises made by negotiating parties, where one or more parties agree to yield on certain points in order to reach an agreement.

Peripheral Route

An influence pathway where individuals are persuaded in an argument by factors not related to the substance of the argument, such as the speaker's credibility or attractiveness.

Message Order

The sequence in which messages are arranged and delivered in communication.