Suppose That a Share of Callidus Corp Sells at a Price

question 23

Multiple Choice

Suppose that a share of Callidus Corp sells at a price of $45 on the expiration date. Compute the payoff to the seller of a put option if the exercise price is $45.

• A)-$10
• B)$45
• C)0

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Definitions:

Neutrons

Subatomic particles found in the nucleus of an atom, with no electric charge and a mass slightly greater than that of protons.

Carbon

A chemical element with symbol C, known as the basis of all known life on Earth, capable of forming multiple compounds including carbon dioxide and organic materials.

Ca

The chemical symbol for calcium, an element with atomic number 20, essential for living organisms, particularly in cell physiology and bone formation.

Neutrons

Electrically neutral subatomic particles found in the nucleus of an atom, contributing to the atom's mass but not its charge.