At What Point Is the Payoff from Owning a Call

question 61

Multiple Choice

At what point is the payoff from owning a call option on a stock greater than the payoff from owning the stock itself?

• A) When stock price exceeds strike price at expiration
• B) When strike price exceeds stock price at expiration
• C) When stock price equals strike price at expiration
• D)Call payoff never exceeds stock payoff.

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Definitions:

Major Depressive Disorder

A mental health disorder characterized by persistent feelings of sadness, lack of interest in activities, and various emotional and physical problems.

Self-Esteem

An individual’s overall subjective evaluation of their own worth or value.

Positive Self-Esteem

Having a favorable and confident appreciation of one's own worth or abilities.

Passivity

The tendency to be inactive or submissive, without taking action or making decisions independently.