Payoff from a Long Position in the Call Option MCQ

$2.00$1.001577 reads

Question

XYZ is a stock currently priced at $106 and does not pay a dividend.    Consider a one year call option with strike price $105.  What is closest to the payoff from a long position in the call option if the stock price rises to $109 in one year?

(a)        $3

(b)        -$3

(c)        $4

(d)       -$4

(e)        $0

 

 

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