You Sold a Call Option on a Stock and the Strike

question 35

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:

Repetition

The action of repeating something that has already been said or done.

Alignment

The adjustment or arrangement of positions in a straight line or in parallel, often referring to text, objects, or values in various fields.

Document-Design

The process of visually planning and arranging the contents of a document to improve readability and aesthetic appeal.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.