Su Lee Wrote Three Call Option Contracts with a Strike

question 5

Multiple Choice

Su Lee wrote three call option contracts with a strike price of $22.50 and an option price of $.55 per share. What is the net profit on this investment if the price of the underlying stock is $22.95 per share on the option expiration date? Ignore trading costs and taxes.

• A) $10
• B) $.30
• C) $.10
• D) $30
• E) $0

Grasp the significance of trade agreements and their impact on international trade relations.

Analyze the concept of export subsidies and their effects on international trade and domestic economies.

Understand the fundamental principles of international trade and the concept of comparative advantage.

Identify the factors that determine the terms of trade between nations.

---

Definitions:

Action Potential

Action potential is the rapid change in electrical charge across a neuron's membrane, allowing for the transmission of nerve signals.

Interneurons

Neurons that transmit impulses between other neurons, especially as part of a reflex arc in the spinal cord or between sensory and motor neurons.

Messages

Pieces of information or communication transmitted between individuals through various means, including speech, writing, or signals.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.