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:

Performance Information

Data and metrics related to the effectiveness and efficiency of an employee's or organization's work performance.

Power Relationships

The dynamics of control, influence, and authority among individuals and groups within an organization or society.

Mixed-Standard Scale

An evaluation tool that measures an individual's performance against fixed standards that represent different levels of achievement.

Performance Dimensions

Various criteria or aspects used to assess an individual's work performance, including quality, efficiency, and reliability.