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

Since the strike price was $13.00 and the stock price was $12.89 at the time of Zena's purchase, the call option was out-of-the-money. This means that if the option expires out-of-the-money, it will be worthless and Zena will lose the amount she paid for it, which is $0.62. Therefore, the correct answer is B) Lose $62.

Nine Months Ago, Zena Paid $0