You Have Shorted a Call Option on WSJ Stock with a Strike

question 46

Multiple Choice

You have shorted a call option on WSJ stock with a strike price of $50.The option will expire in exactly six months.If the stock is trading at $45 in three months,what will you owe for each share in the contract?

• A)$0
• B)$50
• C)$60
• D)$10
• E)$40

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Definitions:

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