On the Expiration Date for a Call Option with Strike

question 33

Multiple Choice

On the expiration date for a call option with strike price of $10.00,premium $1.50 and the current spot price of $9.00,the holder will:

• A) have a total loss of $2.50
• B) let the option contract lapse.
• C) sell the shares at $9.00
• D) close it out by buying a put option.

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