Jay writes a call option with a strike price of $50.What will be Jay's payoff in dollars if the underlying asset price at expiration is $55?
A) $5
B) −$5
C) 0
D) $105

Name: Jay writes a call option with a strike price of $50.What will be Jay's payoff in dollars if the underlying asset price at expiration is $55? A) $5 B) −$5 C) 0 D) $105
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Question

Quizplus · Accepted Answer

−5 X − S_T= − (S_T - X)= − (55−50)= − 5 (short or write a call option)

Jay Writes a Call Option with a Strike Price of $50.What