A Call Option on a Stock Has an Exercise Price

question 90

Multiple Choice

A call option on a stock has an exercise price of $34.50.If the stock price at expiration is $37.50,what is the option payoff for a short call position?

• A)$34.50
• B)$0
• C)$3
• D)-$3
• E)-$34.50

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Definitions:

Acquired Drive

An internal drive state produced when an environmental stimulus is paired with an unconditioned source of drive.

Environmental Cues

External signals or stimuli that can influence behavior and perception.

Anticipatory Goal Response

A reaction that occurs when an individual anticipates achieving a goal, motivating behaviors toward goal attainment.

Deprivation

The state of lacking or being denied something considered to be a necessity.