At What Point Is the Dollar Payoff from Owning a Call

question 6

Multiple Choice

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

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

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Definitions:

Negative Thoughts

Automatic and pessimistic assessments about oneself, one's future, or the world, often associated with depressive and anxiety disorders.

Psychological Care

The provision of support and intervention to improve mental health and emotional well-being.

Psychotropic Medication

Pertains to medications that influence an individual's psychological condition and are employed in the management of mental health conditions.

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder marked by an ongoing pattern of inattention and/or hyperactivity-impulsivity that interferes with functioning or development.