Answer: $717.60.

## Explanation For a call option at expiration, the value is: **Call Value = Max(0, Stock Price - Strike Price)** Given: - Call premium paid = $24.70 (this is the cost to buy the option, not relevant for expiration value calculation) - Strike price = $670 - Call value at expiration = $47.60 We need to find the underlying stock price (S) at expiration: $47.60 = Max(0, S - $670) Since the call has positive value ($47.60 > 0), the stock price must be above the strike price: $47.60 = S - $670 S = $670 + $47.60 = $717.60 Therefore, the price of the underlying at expiration is $717.60. **Key Points:** - The premium paid ($24.70) is irrelevant for calculating the expiration value - it's a sunk cost - At expiration, call value equals the intrinsic value only (time value = 0) - The formula is simply: Stock Price = Strike Price + Call Value (when call is in-the-money) - Option C ($717.60) is correct

Author: LeetQuiz .