On the Expiration Date for a Call Option with Strike

question 6

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 $14.00,the holder will:

• A) buy the shares in the market place.
• B) let the option contract lapse.
• C) exercise the option.
• D) make a profit of $1.50

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