Use the figure for the question(s)below.
-You have shorted a call option on WSJ stock with an exercise price of $50. The option will expire in exactly six months. If the share is trading at $45 in three month, what will you owe for each share in the contract?
A)$60
B)$50
C)$10
D)$0

Question

Use the figure for the question(s)below. 
-You have shorted a call option on WSJ stock with an exercise price of $50. The option will expire in exactly six months. If the share is trading at $45 in three month, what will you owe for each share in the contract?
A)$60 
B)$50 
C)$10 
D)$0

Quizplus · Accepted Answer

Since the share is trading at $45, which is below the exercise price of $50, the option will not be exercised, and you will owe nothing.

Use the Figure for the Question(s)below