The Profit or Loss on a Long Call at Expiry

question 135

Multiple Choice

The profit or loss on a long call at expiry is equal to:

• A)(maximum of (X - S)or zero)+ option premium
• B)(maximum of (X - S)or zero)- option premium
• C)(maximum of (S - X)or zero)- option premium
• D)(maximum of (S - X)or zero)+ option premium.
• E)Cannot be negative.

---

Definitions:

Peer Conformity

The act of changing one's behavior or beliefs to match those of one's peers, often to fit into a group or gain acceptance.

Peer World

The social environment and community formed by individuals of approximately the same age, which greatly influences behaviors, attitudes, and learning.

Adolescents

Individuals in the transitional stage of human development that occurs between puberty and legal adulthood, typically between the ages of 13 and 19.

Children

Individuals who are in the early stages of their lives, typically characterized by rapid physical and mental development.