You Purchased a Call Option with an Exercise Price of $50

question 72

Multiple Choice

You purchased a call option with an exercise price of $50 and a premium of $6. If you exercise the option when the stock price is $60, your net proceeds will be:

• A) $4.
• B) $0.
• C) $10.
• D)$16.

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Definitions:

Food

Any nutritious substance that people or animals eat or drink or that plants absorb to maintain life and growth.

Anorexia

An eating disorder characterized by an obsessive fear of gaining weight, leading to severe food restriction and weight loss.

Failure

The lack of success or the inability to meet a desired or intended objective.

Menstruate

The monthly process in females of reproductive age in which the lining of the uterus is shed if fertilization does not occur, resulting in menstrual bleeding.