**Question 584** option, option payoff at maturity, option profit

Which of the following statements about European call options on non-dividend paying stocks is **NOT** correct?

Which of the below formulas gives the profit ##(\pi)## from being **long** a **call** option? Let the underlying asset price at maturity be ##S_T##, the exercise price be ##X_T## and the option price be ##f_{LC,0}##. Note that ##S_T##, ##X_T## and ##f_{LC,0}## are all positive numbers.

Which of the below formulas gives the profit ##(\pi)## from being **short** a **call** option? Let the underlying asset price at maturity be ##S_T##, the exercise price be ##X_T## and the option price be ##f_{LC,0}##. Note that ##S_T##, ##X_T## and ##f_{LC,0}## are all positive numbers.

Which of the below formulas gives the profit ##(\pi)## from being **long** a **put** option? Let the underlying asset price at maturity be ##S_T##, the exercise price be ##X_T## and the option price be ##f_{LP,0}##. Note that ##S_T##, ##X_T## and ##f_{LP,0}## are all positive numbers.

Which of the below formulas gives the profit ##(\pi)## from being **short** a **put** option? Let the underlying asset price at maturity be ##S_T##, the exercise price be ##X_T## and the option price be ##f_{LP,0}##. Note that ##S_T##, ##X_T## and ##f_{LP,0}## are all positive numbers.

**Question 821** option, option profit, option payoff at maturity, no explanation

You just paid $**4** for a **3** month European style **call** option on a stock currently priced at $**47** with a strike price of $**50**. The stock’s next dividend will be $**1** in **4** months’ time. Note that the dividend is paid after the option matures. Which of the below statements is **NOT** correct?

**Question 823** option, option payoff at maturity, option profit, no explanation

A European **call** option should only be exercised if: