Which of the Following Is the Payoff from an Average

question 11

Multiple Choice

Which of the following is the payoff from an average strike call option?

• A) The excess of the strike price over the average stock price, if positive
• B) The excess of the final stock price over the average stock price, if positive
• C) The excess of the average stock price over the strike price, if positive
• D) The excess of the average stock price over the final stock price, if positive

---

Definitions:

Crustaceans

Members of a subphylum that includes lobsters, crabs, shrimp, barnacles, and their relatives.

Echinoderms

A phylum of marine animals characterized by radial symmetry, a calcareous skeleton, and a water vascular system; includes starfish, sea urchins, and sea cucumbers.

Parasitizes

Describes the action of living as a parasite in or on another organism, exploiting the host for sustenance without mutual benefit.

Biramous Appendages

Appendages with two jointed branches extending from their base. Compare with uniramous appendages.