Multiple Choice
Which one of the following is correct for the owner of a June call, valued at $3, on XYZ Corp. with a strike price of $60? XYZ Corp. currently trades at $55.
A) XYZ stock will go to $63 per share within the option period.
B) The option should be exercised now.
C) The option owner's current profit is $3 per share.
D) The option may expire without value.
Correct Answer:

Verified
Correct Answer:
Verified
Q50: Callable bonds allow the investor to redeem
Q71: The value of a convertible bond is
Q86: Why should a convertible bond always be
Q87: It is May 19 and you own
Q90: Which one of the following is true
Q92: It has been determined that 0.5 share
Q93: Callable bonds give the call option to
Q93: What options may be provided in financial
Q94: Three months ago you bought a put
Q97: The payoffs from investing in an option