A Call Option Was Purchased Last Month for $2

question 53

Multiple Choice

A call option was purchased last month for $2.50 with an exercise price of $45. The option is exercised when the market price of the stock is $48. What is the net profit or loss to the investor?

• A) $3.00
• B) $2.50
• C) $0.50
• D) $0.60

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Definitions:

Cushing's Triad

A set of three primary signs indicating increased intracranial pressure: irregular breathing, bradycardia, and systolic hypertension.

Infratentorial

Refers to the region of the brain below the tentorium cerebelli, including the brainstem and cerebellum.

Bradycardia

A slower than usual heart rate, typically defined as fewer than 60 beats per minute in adults.

Confidential

Information kept secret or private, often within the context of a professional relationship or legal agreement.