You Purchased Eight LJK Call Option Contracts with a Strike

question 267

Multiple Choice

You purchased eight LJK call option contracts with a strike price of $42.50 when the option was quoted at $.65. The option expires today when the value of LJK stock is $43.16. Ignoring trading
Costs and taxes, what is the total profit or loss on your investment?

• A) $.33
• B) $2.40
• C) $8.00
• D) $12.50
• E) $14.00

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Definitions:

Postoperative Exercises

Physical movements or activities recommended after surgery to aid in recovery, improve function, and prevent complications.

Incentive Spirometer

A medical device used to help patients improve the functioning of their lungs and prevent pulmonary complications by encouraging deep breathing exercises after surgery or during lung illness.

Minimizing Discomfort

The process of reducing pain or unease in a patient or individual through various methods and interventions.

Postoperative

Referring to the period or phase immediately following a surgical procedure, during which patient recovery and monitoring are critical.