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

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Definitions:

Latin American

Referring to countries in the Americas where Romance languages (primarily Spanish and Portuguese) are spoken.

Ottoman Empire

A former Turkish empire that was founded about 1300 by Osman and reached its peak during the 16th and 17th centuries.

Civilian Casualties

Non-military individuals who are injured or killed in a conflict or in a tragic event.

Arms Race

a competition between nations for superiority in the development and accumulation of weapons, especially between the Cold War superpowers.