A Call Option on a Stock Has an Exercise Price

question 26

Multiple Choice

A call option on a stock has an exercise price of $12.15.If the stock price at expiration is $11,what is the option payoff for a short call position?

• A)$-11
• B)$11
• C)$1.15
• D)-$1.15
• E)$0

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Definitions:

Objective

Something that one's efforts or actions are intended to attain or accomplish; purpose; goal; target.

Measurable Performance

Refers to the ability to quantify or assess the effectiveness or output of an employee, project, or organization.

Skill-based Pay Plan

A compensation strategy where employees are paid based on the skills and knowledge they possess, rather than their job position or title.

Productivity

The efficacy and efficiency with which input resources (such as time, labor, and materials) are converted into outputs, such as goods or services.