Consider the following one-year European-style options relating to one share of XYZ stock, currently priced at $100. Which of the following has the largest payoff if the stock price in one year is...


Consider the following one-year<br>European-style options relating to one<br>share of XYZ stock, currently priced<br>at $100. Which of the following has<br>the largest payoff if the stock price in<br>one year is $99.5?<br>Possible Answers<br>A A cash-or-nothing call with<br>strike price $100.<br>B An asset-or-nothing call with<br>strike price $100.<br>C A cash-or-nothing put with strike<br>price $100.<br>An asset-or-nothing put with<br>strike price $100.<br>

Extracted text: Consider the following one-year European-style options relating to one share of XYZ stock, currently priced at $100. Which of the following has the largest payoff if the stock price in one year is $99.5? Possible Answers A A cash-or-nothing call with strike price $100. B An asset-or-nothing call with strike price $100. C A cash-or-nothing put with strike price $100. An asset-or-nothing put with strike price $100.

Jun 11, 2022
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