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

question 24

Multiple Choice

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

• A) Buyer of a call option with exercise price of $65
• B) Buyer of a put option with exercise price of $65
• C) Buyer of a call option with exercise price of $85
• D) Buyer of a put option with exercise price of $85

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Definitions:

Carbohydrate

Organic compounds consisting of carbon, hydrogen, and oxygen, serving as a major energy source in the diet of animals and humans.

Polymer

Long molecules made up of repeating units called monomers, found in numerous natural and synthetic materials.

Sugar Monomers

Sugar monomers, such as glucose and fructose, are the simplest form of carbohydrates that cannot be hydrolyzed to simpler sugars; they serve as building blocks for complex carbohydrates.

Monosaccharides

Simple sugars that are the most basic form of carbohydrates, consisting of a single sugar molecule and serving as energy sources and building blocks for more complex carbohydrates.