A Stock Is Selling for $85 at the Expiration of an Option

question 61

Multiple Choice

A stock is selling for $85 at the expiration of an option contract.Which of the following options on the stock will most likely be exercised?

• A) Call option with exercise price of $65
• B) Put option with exercise price of $65
• C) Call option with exercise price of $85
• D) Put option with exercise price of $85

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Definitions:

Mill Rate

The amount of property tax per $1000 value.

Average Number

A value found by adding all numbers in a set together and then dividing by the count of those numbers.

Staff Members

Individuals employed by an organization or a specific department within an organization.

Employees Retired

Refers to workers who have left the workforce, typically upon reaching a certain age or after completing a certain number of years of service, often with a pension.