Suppose You Own a Call Option on a Stock with a Strike

question 25

Multiple Choice

Suppose you own a call option on a stock with a strike price of $20 that expires today. The price of the underlying stock is $15. If you exercise the option and immediately sell the stock, then:

• A) you will earn $5.
• B) you will lose $5.
• C) you will lose $15.
• D) you will earn $15.

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Definitions:

Tolerance and Diversity

The recognition and acceptance of differences among individuals and cultures, fostering an inclusive and respectful environment.

"I" Statements

A communication technique that emphasizes personal feelings and responsibility by starting sentences with the word "I" instead of attributing actions or thoughts to others.

Defensive Reaction

A response aimed at protecting oneself from criticism, harm, or some perceived threat.

Forgiveness

Accepting that circumstances cannot be changed and letting go of resentment and anger for another person’s actions or words.