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Options
-
He/she buys the underlying stock from the option writer at a pre-specified price (strike price)
Correct answer
- B
He/she sells the underlying stock to the option writer at a pre-specified price (strike price)
- C
He/she receives cash amount equal to excess of strike price of the call option over the spot price (at the time of exercise)
- D
He/she receives cash amount equal to excess of spot price (at the time of exercise) over the strike price of the call option
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