You Are Currently Holding a Call Option on a Stock

question 22

Multiple Choice

You are currently holding 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 will be:

• A) -$20.
• B) $0.
• C) $20.
• D) $60.

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Definitions:

Reasoning Ability

The capacity to analyze information, solve problems, and make logical decisions based on available data.

Performance Appraisal

A systematic evaluation of an employee's performance in their job roles and contributions to the organization.

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.

Feedback

Information or opinions about one's actions or performance, given by others, used for improvement or development.