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

question 46

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 $45 in three months,what will you owe for each share in the contract?

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

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Definitions:

Health Care

A broad term encompassing all services, systems, or products related to maintaining or improving an individual’s health, including prevention, diagnosis, treatment, and recovery.

Rising Prices

An economic situation characterized by a general increase in the prices of goods and services over a period of time, often measured by inflation rates.

Health Care Costs

The expenses related to medical services, treatments, drugs, and other health-related items.

Labor Market

The supply of available workers in relation to available work, where wage rates are determined.