What Is the Value of Five September $40 Call Contracts

question 79

Multiple Choice

What is the value of five September $40 call contracts on PTL stock if the option premium quote is $1.35 a share and the stock is selling for $41.30 a share?

• A) $25.00
• B) $650
• C) $6.75
• D) $1.35
• E) $675

---

Definitions:

Virginia

A state in the southeastern U.S., known for its significant history as the site of the first permanent English settlement in America at Jamestown and later as a key battleground in the Civil War.

Presidential Election

The process by which the president of the United States is elected, typically held every four years, where citizens vote for electors who then vote for the president.

Haitian Refugees

Individuals fleeing Haiti due to political instability, natural disasters, or economic hardship, often seeking asylum in other countries.

Slave Importation

The historical act of bringing slaves from Africa to the Americas through the transatlantic slave trade, heavily practiced from the 16th to the 19th century.