A Call Option on a Stock Has an Exercise Price

question 59

Multiple Choice

A call option on a stock has an exercise price of $22.25.If the stock price at expiration is $25,what is the option payoff for a long call position?

• A)$2.75
• B)$0
• C)-$2.75
• D)$25
• E)$22.25

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Definitions:

Presbycusis

Age-related hearing loss, gradually occurring in most individuals as they grow older.

Otitis Media

A middle ear infection characterized by inflammation and potential fluid buildup behind the eardrum, often causing pain and temporary hearing loss.

Otitis Externa

An infection of the outer ear canal, often referred to as swimmer's ear, leading to pain, redness, and swelling.

Mastoiditis

An infection of the mastoid bone of the skull, often occurring when an untreated or inadequately treated ear infection spreads.