Which Combination of Stock, Exercise, and Option Prices Are Most

question 10

Multiple Choice

Which combination of stock, exercise, and option prices are most likely associated with an American call option?

• A) stock = $60, exercise = $65, option = $5
• B) stock = $65, exercise = $60, option = $5
• C) stock = $65, exercise = $60, option = $7
• D) stock = $60, exercise = $65, option = $7

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Definitions:

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