Suppose That in June 2018 You Bought a Call Option

question 314

Multiple Choice

Suppose that in June 2018 you bought a call option that allows you to buy 100 shares of a certain stock for $20 before October 2018.If the market price of the stock at some point before October 2018 is $23,and you exercise your option,what will happen?

• A)You will make a $30.00 profit.
• B)You will make a $300.00 profit.
• C)You will make a $3000.00 profit.
• D)You will incur a loss of $30.00.
• E)You will incur a loss of $300.00.

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Definitions:

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A cognitive bias where individuals may have a preference or exhibit better performance and decision-making skills in the morning.