You Own Four Call Option Contracts on Webster South Stock

question 401

Multiple Choice

You own four call option contracts on Webster South stock with a strike price of $17.50. When you purchased the shares the option price was $.85 and the stock price was $16.90. What is the
Intrinsic value of your investment if Webster is currently selling for $16.40 a share?

• A) -$440
• B) -$240
• C) $0
• D) $240
• E) $440

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FDA

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Abuse Potential

The likelihood or propensity for a substance, particularly drugs or alcohol, to be misused or become addictive.

MDMA

A synthetic drug known as 3,4-methylenedioxymethamphetamine, primarily used for its euphoric and empathogenic effects.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, playing a role in mood regulation, appetite, and sleep.