CFA Level I Options Video Lecture by Mr. Arif Irfanullah part 1

[@ramachandraniyer4079]

Thanks for the great efforts. Best wishes.

[@IFT-CFA]

That was a slip of the tongue. To make things very clear here is what happens... If the stock price is 30 at maturity, the long call will exercise the option. This means he'll exercise the right to buy the share at 25. Since he can sell the share for 30 his payoff is 5.

[@StudentStudious]

great work sir.......am from india.......keep the repo going...

[@daniego1478]

Selam Arif! Very nice explained! Thank you!

[@vivekkumar-ky9bz]

Thank you sir!

[@IFT-CFA]

Dear Vivek, Thank you for your kind words. IFT Support Team

[@jelleman88]

@livenletlive100 yes he will. think about it logically: the option holder would not opt to sell something worth $30 for less than $30, right? :)

[@smosqueiraumd]

In minute 4:00 you say you "sell the call at $25 and make $5" shouldn't it be you sell the call in the market at $30????

[@anirbanguhathakurta4196]

Yes exactly