Question
A European call option has a strike price of K and maturity of T. If the stock price at the maturity is ST, what is
A European call option has a strike price of K and maturity of T. If the stock price at the maturity is ST, what is the payoff from a short position in this call option (without considering the option price)?
Group of answer choices:
Max(K - ST, 0)
-Max(ST - K, 0)
-Max(K - ST, 0)
Max(ST - K, 0)
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
