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.

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Definitions:

Challenge Earlier Decisions

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Project Milestones

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The increased stress or urgency often experienced as a project approaches its deadline or closure.

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Emotional dissatisfaction experienced by clients, often due to unmet expectations or perceived lack of progress or attention.