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Assume an Investor Buys a Call Option with Strike Price

Question 21

Multiple Choice

Assume an investor buys a call option with strike price, Assume an investor buys a call option with strike price,   , and sells a call option on the same stock with a strike price,   Assume, too, that   If the stock price,   is greater than   at expiration, which of the following represents the total payoff to the investor? A)    B)    C)    D) 0 , and sells a call option on the same stock with a strike price, Assume an investor buys a call option with strike price,   , and sells a call option on the same stock with a strike price,   Assume, too, that   If the stock price,   is greater than   at expiration, which of the following represents the total payoff to the investor? A)    B)    C)    D) 0 Assume, too, that Assume an investor buys a call option with strike price,   , and sells a call option on the same stock with a strike price,   Assume, too, that   If the stock price,   is greater than   at expiration, which of the following represents the total payoff to the investor? A)    B)    C)    D) 0 If the stock price, Assume an investor buys a call option with strike price,   , and sells a call option on the same stock with a strike price,   Assume, too, that   If the stock price,   is greater than   at expiration, which of the following represents the total payoff to the investor? A)    B)    C)    D) 0 is greater than Assume an investor buys a call option with strike price,   , and sells a call option on the same stock with a strike price,   Assume, too, that   If the stock price,   is greater than   at expiration, which of the following represents the total payoff to the investor? A)    B)    C)    D) 0 at expiration, which of the following represents the total payoff to the investor?


A) Assume an investor buys a call option with strike price,   , and sells a call option on the same stock with a strike price,   Assume, too, that   If the stock price,   is greater than   at expiration, which of the following represents the total payoff to the investor? A)    B)    C)    D) 0
B) Assume an investor buys a call option with strike price,   , and sells a call option on the same stock with a strike price,   Assume, too, that   If the stock price,   is greater than   at expiration, which of the following represents the total payoff to the investor? A)    B)    C)    D) 0
C) Assume an investor buys a call option with strike price,   , and sells a call option on the same stock with a strike price,   Assume, too, that   If the stock price,   is greater than   at expiration, which of the following represents the total payoff to the investor? A)    B)    C)    D) 0
D) 0

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