You sold a call option on a stock and the strike price of the option is $30.The option has 3 weeks until expiration and the stock is currently priced at $35 per share.You originally sold the call option for $3.What is the largest payout possible total payout to you for this call option?

Question

Quizplus · Accepted Answer

The largest total payout you can receive from selling a call option is the premium you collected when you sold the option, which in this case is $3.

You Sold a Call Option on a Stock and the Strike