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:

Faulty Thinking

Patterns of thought that are typically negative and irrational, often leading to inaccurate conclusions or emotional distress.

Distorted Perceptions

Instances where one's understanding or interpretation of sensory information does not accurately reflect reality.

Manipulative

Characterized by the skillful handling, controlling, or influencing of others in a clever or unscrupulous way.

Identity

The distinct personality of an individual regarded as a persisting entity; one's sense of self, defined by personal, social, and sometimes cultural dimensions.