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Sam Owns a Call Option on a Stock and on the Expiration

Question 50

Multiple Choice

Sam owns a call option on a stock and on the expiration date the stock price exceeds the strike price in the option contract, so Sam will:


A) let the option expire without exercising the option.
B) exercise the option and buy the stock at the strike price and hold it in his portfolio.
C) exercise the option and buy the stock at the strike price and immediately resell it at the market price.
D) buy the stock at the market price and then exercise the option by selling the stock at the strike price.

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