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:

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