At Expiry, the Seller Holder of a Call Option (With

question 5

Multiple Choice

At expiry, the seller holder of a call option (with an exercise price of $32, sold for a premium of $0.85) over Wesfarmers shares (now trading at $32.50) will:

• A)be obligated to sell shares to the holder but still make a profit of $0.35 per share
• B)be obligated to sell shares to the holder but still make a profit of $1.35 per share
• C)be obligated to sell shares to the holder but still make a profit of $0.85 per share
• D)not be required to sell shares to the holder and make a profit of $0.85 per share.
• E)None of these are correct.

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Definitions:

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans are believed to share.

Competitive And Ambitious

Traits that involve a desire to succeed or excel, often by comparing oneself to others or striving for higher achievements.

First-Born

The child who is born first in the birth order of a family, often discussed in the context of their psychological traits and developmental experiences.

Only Child

An individual who has no siblings and thus receives undivided attention and resources from their parents, affecting their social and personality development.