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:

Team

A group of individuals working together towards a common goal or objective.

Solve

The act of finding a solution to a problem or challenge.

Demote

The action of reducing someone's rank or position, usually as a disciplinary measure or organizational restructuring.

Lower-level Position

A job role that typically requires less experience and responsibility within the organizational hierarchy.