In a shout call option the strike price is $30 . The holder shouts when the asset price is $40 . What is the payoff from the option if the final asset price is $35?
A. $0
B. $5
C. $10
D. $15
C
The holder gets the intrinsic value at the time of the shout or the usual final payoff whichever is greater. In this case the holder gets 40?30 = $10
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