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

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Legally Binding Contract

An agreement between two or more parties that is enforceable by law, usually requiring an offer, acceptance, and consideration.

Disaffirmance

The legal cancellation or voiding of a contract or agreement, often due to one party's lack of capacity or discovery of a significant mistake.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement.

Restitution

An act of restoring or paying compensation for loss or damage to the original state or owner.