A short-call party to a call option with an exercise price of $10.00 and a premium of $1.00,if the current price of the underlying asset is $8.00 on the exercise date,would make a loss of $1.00

Name: A short-call party to a call option with an exercise price of $10.00 and a premium of $1.00,if the current price of the underlying asset is $8.00 on the exercise date,would make a loss of $1.00
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Question

Quizplus · Accepted Answer

Given V = P - max(S-X, 0) they would make a profit of $1.00.

A Short-Call Party to a Call Option with an Exercise