You Bought Nine Call Option Contracts with a Strike Price

question 36

Multiple Choice

You bought nine call option contracts with a strike price of $25.00 and a premium of $.50. At expiration, the stock was selling for $23.75 a share. What is the total profit or loss on your option position if you did not exercise it prior to the expiration date?

• A)−$9.24
• B)−$10.20
• C)$0
• D)−$270
• E)−$450

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Definitions:

Ayn Rand

was a Russian-American writer and philosopher known for developing a philosophical system called Objectivism and for her novels "The Fountainhead" and "Atlas Shrugged."

Josef Stalin

Soviet political leader who governed the Soviet Union from the mid-1920s until his death in 1953, known for his totalitarian rule.

Harry S Truman

The 33rd president of the United States, known for his leadership during the final stages of World War II and the early years of the Cold War.

Soviet Citizens

Individuals who were recognized as nationals of the Soviet Union, a federal socialist state in Eurasia that existed from 1922 to 1991.