You Bought Four Call Option Contracts with a Strike Price

question 58

Multiple Choice

You bought four call option contracts with a strike price of $48.25 and an option premium of $1.30. At expiration, the stock was selling for $51.30 a share and you exercised your option. What is your total cost basis in the acquired shares?

• A)$23,150
• B)$19,820
• C)$23,750
• D)$24,250
• E)$26,250

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Definitions:

Perilymph

A fluid located in the inner ear, found within the scala tympani and scala vestibuli of the cochlea.

Cerumen

Another term for earwax, a substance secreted in the ear canal that protects and cleans the ears.

Tinnitus

A condition characterized by hearing noises (such as ringing, buzzing, or humming) in the ears when no external sound is present.

Vertigo

A sensation of spinning or having one's surroundings spin around them, which is often caused by problems with the inner ear or brain.