You Purchased One ABP 35 Call Option Contract at a Quoted

question 138

Multiple Choice

You purchased one ABP 35 call option contract at a quoted price of $1.65. What is your net gain or loss on this investment if the price of ABP is $34.20 on the option expiration date?

• A) -$165
• B) -$85
• C) $0
• D) $85
• E) $165

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Definitions:

Target Corporation

An American retail corporation that operates large-format stores selling a wide variety of goods including household essentials, electronics, and apparel.

Control

The power to influence or direct people's behavior or the course of events.

Voluntary Dissolution

The intentional termination of a corporation or partnership through the decision of its owners or members, without external pressure.

Discontinue

The act of ending or stopping something formally, such as a service, product line, or business operation.