You Wrote Ten Call Option Contracts on JIG Stock with a Strike

question 65

Multiple Choice

You wrote ten call option contracts on JIG stock with a strike price of $40 and an option price of $.40. What is your net gain or loss on this investment if the price of JIG is $46.05 on the option expiration date?

• A) -$6,450
• B) -$5,650
• C) $400
• D) $5,650
• E) $6,450

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