You Purchased Eight LJK Call Option Contracts with a Strike

question 416

Multiple Choice

You purchased eight LJK call option contracts with a strike price of $42.50 when the option was quoted at $.65. The option expires today when the value of LJK stock is $43.16. Ignoring trading costs and taxes, what is the total profit or loss on your investment?

• A) $.33
• B) $2.40
• C) $8.00
• D) $12.50
• E) $14.00

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Definitions:

Least-Traveled

Often referring to paths or methods not widely used or explored, indicating uniqueness or innovation.

Public Service Motivation

The intrinsic motivation to help the public or contribute to the well-being of society that drives individuals to work in the public sector.

Public Institutions

Organizations that operate in the public sector, primarily funded by taxpayers and designed to provide services to the public.

Temporal Motivation Theory

A theory that explains motivation in terms of time, considering how individual time perceptions influence goal-setting and prioritization.