You Purchased Five Call Option Contracts with a Strike Price

question 64

Multiple Choice

You purchased five call option contracts with a strike price of $22.50 and an option premium of $.48. You held the option until the expiration date. On the expiration date, the stock was selling for $21.70 a share. What is the total profit or loss on your option position?

• A)−$45
• B)$0
• C)−$240
• D)−$120
• E)−$135

Recognize the significance and placement of withdrawals and expenses in financial reporting.

Understand the structure and purpose of a trial balance in accounting.

Identify and categorize different types of accounts (assets, liabilities, equity, revenue, expenses, and withdrawals) within a financial accounting system.

Analyze and calculate owner's equity based on given financial information.

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Definitions:

Mineral Supplies

The total availability of extractable minerals and elements from the earth's crust that are valuable for economic and industrial processes.

Scarcity

A situation in which available resources are insufficient to satisfy the wants and needs of people or the ecosystem.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs for production processes.

Consumer Goods

Products manufactured and bought to satisfy personal or household needs and wants, such as clothing, food, and electronics.