If a stock option is never exercised, the return on investment generated is
A) 100%.
B) 0%.
C) -100%.
D) Not enough information given to determine.

Name: If a stock option is never exercised, the return on investment generated is A) 100%. B) 0%. C) -100%. D) Not enough information given to determine.
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Question

Quizplus · Accepted Answer

If a stock option is never exercised, it eventually expires worthless, resulting in a loss of 100% of the investment made to purchase the option.

If a Stock Option Is Never Exercised, the Return on Investment