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

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