What Is the Payoff for the Owner of a Call

question 60

Multiple Choice

What is the payoff for the owner of a call option with a strike price of $35 if the underlying stock price at expiration is $30?

• A) $10
• B) $20
• C) $5
• D) $0

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Definitions:

Outgroup

A social group with which an individual does not identify, often leading to them being viewed as "them" in contrast with the "us" of the ingroup.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Explicit Bias

Conscious or deliberate prejudice toward particular groups or individuals based on race, gender, age, or other characteristics.

Just-world Phenomenon

A cognitive bias leading individuals to believe that the world is fundamentally fair, thus people get what they deserve.