A call option on a stock has an exercise price of $22.25. If the stock price at expiration is $25, what is the option...
A call option on a stock has an exercise price of $22.25. If the stock price at expiration is $25, what is the option payoff for a long call position?
A. $22.25
B. $25
C. −$2.75
D. $0
E. $2.75
Homework Answers
Answer: Option e is correct.
Option payoff for long call is =stock price - exercise price =
25-22.5=2.75
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