Nine months ago, Zena paid $0.62 to purchase one call option on LPK stock. The stock price was $12.89 and the strike price was $13.00 at the time of her purchase. If the options expire out-of-the-money, Zena will:

Question

Quizplus · Accepted Answer

When an option expires out-of-the-money, the buyer of the call option loses the premium paid for the option, which in Zena's case was $0.62. Since options typically represent 100 shares, her total loss would be $62 (0.62 * 100).

Nine Months Ago, Zena Paid $0