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A Stock Is Selling at $85 at the Expiration of an Option

Question 13

Multiple Choice

A stock is selling at $85 at the expiration of an option contract. Which one of the following options on the stock will most likely be exercised?


A) Call option with exercise price of $65
B) Put option with exercise price of $65
C) Call option with exercise price of $85
D) Put option with exercise price of $85

Correct Answer:

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