A Stock Is Selling at $85 at the Expiration of an Option

question 13

Multiple Choice

A stock is selling at $85 at the expiration of an option contract. Which one of the following options on the stock will most likely be exercised?

• A) Call option with exercise price of $65
• B) Put option with exercise price of $65
• C) Call option with exercise price of $85
• D)Put option with exercise price of $85

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