You purchase a call option on a stock.The profit at contract maturity of the option position is ___________ where X equals the option's strike price,S_T is the stock 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 stock.The profit at contract maturity of the option position is ___________ where X equals the option's strike price,S_T is the stock 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 Stock