You purchased a call option with an exercise price of $50.If you exercise the option when the stock price is $60,your proceeds will be:
A) $10.
B) $0.
C) $4.
D) $16.

Name: You purchased a call option with an exercise price of $50.If you exercise the option when the stock price is $60,your proceeds will be: A) $10. B) $0. C) $4. D) $16.
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Question

Quizplus · Accepted Answer

The proceeds from exercising a call option are the difference between the stock price and the exercise price. Here, $60 (stock price) - $50 (exercise price) = $10.

You Purchased a Call Option with an Exercise Price of $50.If