You Sold a Call Option on a Stock and the Strike

question 55

Multiple Choice

You sold a call option on a stock and the strike price of the option is $30.The option has 3 weeks until expiration and the stock is currently priced at $35 per share.You originally sold the call option for $3.What is the largest payout possible total payout to you for this call option?

• A) $0
• B) $3
• C) $5
• D) $30

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Definitions:

Motivated Forgetting

A psychological theory that suggests individuals may forget unwanted memories, either consciously or unconsciously, due to the memories being distressful or threatening.

Anxiety-Arousing Memories

Recollections of past events that trigger feelings of fear, worry, or apprehension.

Repression

In psychoanalytic theory, the basic defense mechanism that banishes from consciousness anxiety-arousing thoughts, feelings, and memories.

Long-Term Memory

The aspect of memory where information is stored for an extended period, ranging from hours to a lifetime.