Which of the following statement is correct? You sold (i.e. written) a call option on...
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Which of the following statement is correct? You sold (i.e. written) a call option on a stock, and the option matures today. The current stock price is $100, and the exercise price is $65. Then, the option is exercised and your payoff will be positive. You sold (i.e. written) a put option with the exercise price of $50. The underlying stock price is $95 on the maturity date. The option is exercised and your payoff from the transaction will be $45. O Value of a call option increases when the exercise price increases. You own a put option on a stock, and the option matures today. The current stock price is $70, and the exercise price is $115. Then you exercise the option and get $45 payoff. You own a call option with the exercise price of $55. The underlying stock price is $75 on the maturity date. The option is exercised your payoff is - $20 from the transaction
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