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

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Definitions:

Aimless

Lacking a goal, direction, or purpose.

Organic Product

A substance that results from organic chemistry reactions, typically containing carbon atoms.

Major Reaction

A term referring to the primary or most significant chemical reaction occurring in a mixture where multiple reactions may be possible.

Perform Transformation

The process of converting one chemical compound into another through a chemical reaction.