You Sold (Wrote) Three TXA Call Option Contracts with a Strike

question 321

Multiple Choice

You sold (wrote) three TXA call option contracts with a strike price of $35 when the option was quoted at $2.60. The option expires today when the value of TXA stock is $33.70. Ignoring trading costs and taxes, what is your total profit or loss on your investment?

• A) $0
• B) $260
• C) $390
• D) $780
• E) $1,170

Comprehend the relationship between sales and receivables management.

Recognize the effect of asset management on company profitability and efficiency.

Understand the calculation and implications of profit margin ratios.

Recognize the importance of investment and financing decisions on financial health.

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Definitions:

Appropriate Behavior

This describes actions that are considered acceptable or proper in a given context, often aligned with societal or organizational norms and expectations.

Ignoring

A behavioral strategy where no attention or reinforcement is given to a certain behavior, with the aim of reducing or eliminating it.

Inappropriate Behavior

Actions or conduct that are not suitable or acceptable in a given context or situation, often violating social norms or expectations.

Generalized Conditioned Reinforcer

A specific type of conditioned reinforcer. Generalized conditioned reinforcers can be exchanged for a virtually limitless amount of items and activities. Money is the prototypic example.