An investor purchases a call option for $5 per share in a stock currently selling for $24 per share. The exercise price is $30 per share. On the day the option expires, the stock is selling for $29 per share
What will the investor do? What is the investor's total gain or loss?
A) Exercise the option; total gain $500
B) Allow the option to expire; total gain $500
C) Allow the option to expire; total loss $500
D) Exercise the option; total loss $100
Answer: C
Business
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