Suppose That a Stock Sells at a Price of $60

question 53

Multiple Choice

Suppose that a stock sells at a price of $60 on the expiration date. Compute the payoff to the seller of a call option if the option strike price is $20.

• A) -$20
• B) -$30
• C) -$40
• D) -$50

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Definitions:

Neutrons

Neutral particles within an atom's nucleus, contributing to the atom's mass but not its charge.

Atom

The basic unit of a chemical element, made up of a nucleus surrounded by electrons.

Protons

Protons are positively charged subatomic particles found in the nucleus of an atom, contributing to the atom's mass and defining the element's identity.

Synergistic Interaction

A situation where two or more substances or organisms work together to produce a combined effect greater than the sum of their separate effects.