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A call option priced at $2 with a stock price of $32 and an exercise price...

A call option priced at $2 with a stock price of $32 and an exercise price of $35 allows the holder to buy the stock at

$2

$32

$33

$35

none of the above
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Answer #1

$35

the strike is the price at which the holder of the call option will have the right to buy the stock. The call option holder will exercise his option if the stock price is more than the strike price. In theta case, the stock will be purchased at the strike price and will be sold at the current stock price.

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