SIE Exam & Series 7 Exam - Long Call is Exercised Need Cash = to the Aggregate Exercise Price T + 2.
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Basic Options Class
Basic Options Class SIE Exam Prep & Series 7 Exam Prep - ...
Each option contract represents 100 shares. Exercising five call options means buying 500 shares at a price of $40 each, which equals $20,000. Although it is true that European-style options are exercisable only at expiration, nothing in the question indicates the investor tried to exercise before then.
Each option contract represents 100 shares. Exercising five call options means buying 500 shares at a price of $40 each, which equals $20,000. Although it is true that European-style options are exercisable only at expiration, nothing in the question indicates the investor tried to exercise before then.
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