# If the strike price of a European call is K = 52, and the expiration of this call is at the end of 6 days, what is the payoff of the call?

**QUESTION:**

(1) If the strike price of a European call is K = 52, and the expiration of this call is at the end of 6 days, what is the payoff of the call? That is, what is the value of (S6 – K)+.

(2) Could you use the present value of (S6 – K)+ in 1) as an approximation to the cost of the call? How could you derive a ‘better’ cost?

*That is so great to hear. We really try our best to provide you the quality content. And thank you so much for taking the time to provide your feedback. Complaints*

## Responses