At Contract Maturity the Value of a Call Option Is

question 22

Multiple Choice

At contract maturity the value of a call option is ________, where X equals the option's strike price and ST is the stock price at contract expiration.

• A) max (0, ST − X)
• B) min (0, ST − X)
• C) max (0, X − ST)
• D) min (0, X − ST)

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Definitions:

Flight of Ideas

A rapid flow of thought, often manifesting as a symptom in conditions like bipolar disorder, characterized by rapid topic changes.

Echolalia

The repetition of words or phrases spoken by others, a speech pattern often found in people with autism and certain other conditions.

Clanging

A pattern of speech where the choice of words is governed by sound rather than meaning, typically noticed in psychiatric conditions.

Word Salad

A speech disorder characterized by the random juxtaposition of words that lack meaningful connection, typically seen in severe psychiatric conditions such as schizophrenia.