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A Cash-Or-Nothing Call Option Written on a Stock

Question 3

Multiple Choice

A cash-or-nothing call option written on a stock


A) Pays the value of the stock in cash if the option finishes in-the-money and nothing otherwise.
B) Pays a fixed amount of cash if the option finishes in-the-money and nothing otherwise.
C) Is any cash-settled standard call option.
D) Pays the difference between the stock price and strike price in cash to the option holder if the option should finish in-the-money and nothing otherwise.

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