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

question 45

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 $60 in three months,what will you owe for each share in the contract?

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

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Definitions:

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of potentially lower numbers of unobserved variables, called factors.

Factor Analysis

A statistical method used to describe variability among observed variables in terms of a potentially lower number of unobserved variables called factors.

Construct Projective

A technique in psychology used to assess individuals' personality traits and unconscious desires or fears by interpreting their responses to ambiguous stimuli.

Fundamental Traits

Core characteristics that are considered stable in an individual's personality and form the foundation of their behavior and attitudes.