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:

Supply Chain

The network of all activities, individuals, resources, and technology involved in the creation and sale of a product, from raw materials to delivery to the end user.

Warehousing

The act of storing goods in a large building or warehouse for distribution, sale, or future use.

Maintenance Scheduling

The process of planning and organizing maintenance activities to ensure optimal operation of equipment and minimize downtime.

Drop Shipping

Shipping directly from the supplier to the end consumer rather than from the seller, saving both time and reshipping costs.