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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