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:

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Sales Promotion Agency

A company specializing in the creation and execution of promotional activities designed to increase sales and enhance brand recognition.

Behavioral Segmentation

The division of a market into groups based on consumer behaviors and purchasing decisions, allowing for more targeted marketing strategies.

Over 40 Weeks

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