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:

Servant Leadership

A leadership philosophy that emphasizes the leader's role as serving the needs of others, focusing on their growth and well-being.

Mentoring

A process in which an experienced individual supports and guides a less experienced person to help them develop specific skills and knowledge to enhance personal and professional growth.

Communications Competency

The ability to effectively convey, receive, and interpret messages through the process of interpersonal exchange.

Unappreciative Leaders

Managers or supervisory figures who fail to recognize or value the efforts and contributions of their team members.