AFP
CTP · Question #72
(Topic 1) A call option for a company has an exercise price of $50. The stock is currently trading at $60. At maturity, what should an investor who paid $3 for the option do?
The correct answer is A. Exercise the option and gain $7. See the full explanation below for the reasoning.
Question
- (Topic 1)
A call option for a company has an exercise price of $50. The stock is currently trading at $60. At maturity, what should an investor who paid $3 for the option do?
Options
- AExercise the option and gain $7.
- BExercise the option and gain $10.
- CNot exercise the option and lose $3.
- DNot exercise the option and lose $13.
How the community answered
(48 responses)- A71% (34)
- B8% (4)
- C17% (8)
- D4% (2)
Community Discussion
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