Suppose that a stock sells at a price of $40 on the expiration date. Compute the payoff to the seller of a call option if the option strike price is $50.
A) -$20
B) -$10
C) 0
D) $20

Name: Suppose that a stock sells at a price of $40 on the expiration date. Compute the payoff to the seller of a call option if the option strike price is $50. A) -$20 B) -$10 C) 0 D) $20
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C) As stock price of $40 is less than strike price of $50, so the call option will not be exercised, and seller will have no obligation.

Suppose That a Stock Sells at a Price of $40