kim226

A put option has a strike price of $80, and the stock price is $75 at expiration. The expiration day value of the put option is:

A) $5.

B) $0.

C) $80.

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A put option has an expiration day value of MAX (0, X-S). Here, X is $80 and S is $75.

kim226

A call option has a strike price of $120, and the stock price is $105 at expiration. The expiration day value of the call option is:

A) $0.

B) $105.

C) $15.

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A call option has an expiration day value of MAX (0, S-X). Here, X is $120 and S is $105. Because the call option is out of the money at expiration, its value is zero.

kim226

A put option has a strike price of $65, and the stock price is $39 at expiration. The expiration day value of the put option is:

A) $65.

B) $26.

C) $0.

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A put option has an expiration day value of MAX (0, X-S). Here, X is $65 and S is $39.