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:

Behavior Therapies

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning and other learning techniques.

Unconscious Mind

The part of the mind that is inaccessible to the conscious mind but influences thoughts, feelings, and behaviors.

Transference

A psychological phenomenon where an individual unconsciously redirects their feelings for one person to another, often observed in psychotherapy.

Content of Dreams

The actual material and storyline of dreams, often analyzed in psychological studies to understand unconscious desires and conflicts.