Suppose that you purchased 10 call options on Tesla stock in the past. The option you bought has an exercise price of 7
Posted: Wed May 18, 2022 11:14 pm
Suppose that you purchased 10 call options on Tesla stock in the
past. The option you bought has an exercise price of 750, and
the stock is now at 775. The option allows you to exercise
immediately. What will happen if you exercise all of the
option contracts now?
Group of answer choices
You will pay $7,500 and receive Tesla stock.
You will have to sell 1,000 shares of Tesla at 775 per
share.
You will receive your initial premium paid from your broker as a
rebate.
You will have to pay $750,000 to purchase Tesla stock.
You will receive $750 and no shares of Tesla.
past. The option you bought has an exercise price of 750, and
the stock is now at 775. The option allows you to exercise
immediately. What will happen if you exercise all of the
option contracts now?
Group of answer choices
You will pay $7,500 and receive Tesla stock.
You will have to sell 1,000 shares of Tesla at 775 per
share.
You will receive your initial premium paid from your broker as a
rebate.
You will have to pay $750,000 to purchase Tesla stock.
You will receive $750 and no shares of Tesla.