You Sold One Call Option Contract with a Strike Price

question 153

Multiple Choice

You sold one call option contract with a strike price of $42.50 when the option was quoted at $1.10. The option expires today when the value of the underlying stock is $38.10. Ignoring trading costs
And taxes, what is your net profit or loss on your investment?

• A) -$550
• B) -$110
• C) $0
• D) $110
• E) $550

---

Definitions:

Perimenopause

The transitional phase before menopause, marked by changes in menstrual cycles and symptoms like hot flashes.

Menopause

The time in a woman's life, usually occurring between 45 and 55 years of age, when menstrual cycles cease permanently due to the decline of ovarian function.

Reflexes

Involuntary and nearly instantaneous movements in response to a stimulus.

At Birth

A phrase referring to the moment or period of exiting the mother's womb and beginning independent life.