Suppose That a Stock Sells at a Price of $60

question 53

Multiple Choice

Suppose that a stock sells at a price of $60 on the expiration date. Compute the payoff to the seller of a call option if the option strike price is $20.

• A) -$20
• B) -$30
• C) -$40
• D) -$50

---

Definitions:

Brand Dilution

The weakening of a brand's power or credibility, often caused by overextension of the brand name or excessively broad product offerings.

Brand Extensions

A marketing strategy where a company uses an existing brand name to launch a product in a different category.

Cannibalization

The decrease in the number of sales, income, or market presence of an existing product caused by the launching of a new product by the same manufacturer.

Corporate Branding

Corporate branding is the practice of promoting the brand name of a corporate entity, as opposed to specific products or services, to enhance its reputation and identity.