If the owner of a call option with a strike price of $35 finds the stock to be trading for $42 at expiration, then the option:
A) expires worthless.
B) will not be exercised.
C) is worth $7 per share.
D)cost too much initially.

Name: If the owner of a call option with a strike price of $35 finds the stock to be trading for $42 at expiration, then the option: A) expires worthless. B) will not be exercised. C) is worth $7 per share. D)cost too much initially.
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Question

Quizplus · Accepted Answer

Payoff = $42 - 35 = $7

If the Owner of a Call Option with a Strike