On March 30 You Are Holding a Call Option on a Stock

question 28

Multiple Choice

On March 30 you are holding a call option on a stock (exercise price of $60) ,which will expire on March 31.The closing price of the stock on March 30 is $59.What is the value of your call option?

• A) $1
• B) - $1
• C) Very little
• D) Zero

---

Definitions:

Price

The cash value expected, required, or contributed in transaction for an item.

Delphiniums

A genus of perennial flowering plants known for their tall spikes of colorful flowers.

Second-Class Tickets

Tickets offering a lower level of service or comfort on public transport, often at a reduced price compared to first-class tickets.

First-Class Tickets

Tickets that provide premium services and amenities above standard class, often associated with air travel, trains, or other transportation modes.