You purchase a call option on a share. The profit at contract maturity of the option position is ________ where X equals the option's strike price, ST is the share price at contract expiration and C0 is the original purchase price of the option. A)Max(-C₀, S_T - X - C₀) B)Min(-C₀, S_T - X - C₀) C)Max(C₀, S_T - X + C₀) D)Max(0, S_T - X - C₀)

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The Answer of You purchase a call option on a share. The profit at contract maturity of the option position is ________ where X equals the option's strike price, ST is the share price at contract expiration and C0 is the original purchase price of the option. A)Max(-C₀, S_T - X - C₀) B)Min(-C₀, S_T - X - C₀) C)Max(C₀, S_T - X + C₀) D)Max(0, S_T - X - C₀)

You Purchase a Call Option on a Share