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:

Necrophiles

Individuals who have a sexual attraction to corpses.

Pedophiles

Individuals who are primarily attracted to prepubescent children, a condition that is considered a psychiatric disorder.

Exhibitionists

Individuals who experience a sexual urge or gain gratification by exposing their genitals to unsuspecting strangers.

Paraphilia

Patterns of sexual interest that involve unusual objects, situations, or individuals outside of normative sexual attractions.