Suppose That in June 2013 You Bought a Call Option

question 60

Short Answer

Suppose that in June 2013 you bought a call option that allows you to buy 100 shares of a certain stock for $20 before October 2013. If the market price of the stock at some point before October 2013 is $23, and you exercise your option, what will happen?
You will make a $30.00 profit.
You will make a $300.00 profit.
You will make a $3000.00 profit.
You will incur a loss of $30.00.
You will incur a loss of $300.00.