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

Question

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

Quizplus · Accepted Answer

A) The call is out-of-the-money, so it will not be exercised.

Use the Figure for the Question Below