If the Owner of a Call Option with a Strike

question 82

Multiple Choice

If the owner of a call option with a strike price of $35 finds the stock to be trading for $42 at expiration, then the option:

• A) expires worthless.
• B) will not be exercised.
• C) is worth $7 per share.
• D)cost too much initially.

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Definitions:

Degrees of Freedom

The volume of exclusive values or quantities that can be allotted to a statistical distribution.

DfWG

Degrees of Freedom Within Groups, related to variance analysis, expressing the number of independent pieces of information within groups.

Respondents

Individuals who provide data or answers in a survey, study, or experiment.

Degrees of Freedom

The number of independent values or quantities that can vary in the analysis without violating any constraints.