You Purchase a Call Option on a Stock

Multiple Choice

You purchase a call option on a stock. The profit at contract maturity of the option position is ________, where X equals the option's strike price, S_T is the stock price at contract expiration, and C₀ is the original purchase price of the option.

A) max (−C₀, S_T − X − C₀)
B) min (−C₀, S_T − X − C₀)
C) max (C₀, S_T − X + C₀)
D) max (0, S_T − X − C₀)