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You Paid $5 a Call Option on a Stock with an Exercise

Question 87

Multiple Choice

You paid $5 a call option on a stock with an exercise price of $80.If the current stock price is $60, your net proceeds by exercising this option and selling the stock will be:


A) ($25) .
B) $0.
C) $20.
D) $60.

Correct Answer:

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