If the stock price is currently 36,the exercise price is 35 and the stock ends up at 44,the value of an asset-or-nothing option at expiration is
A)35
B)8
C)9
D)44
E)none of the above

Question

Quizplus · Accepted Answer

An asset-or-nothing option pays the holder the value of the underlying asset if the option is in-the-money at expiration. Since the stock ends up at 44, the value of the option at expiration is 44.

If the Stock Price Is Currently 36,the Exercise Price Is