You Purchased a Call Option with a $17

question 57

Multiple Choice

You purchased a call option with a $17.35 strike price and a call premium of $.30. On the expiration date, the underlying stock was priced at $18.55 per share. What is the percentage return on your investment?

• A)−100%
• B)0%
• C)125%
• D)200%
• E)300%

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Definitions:

Depositary Bank

A financial institution that holds and manages the deposits of securities for investors, facilitating the trading of these securities.

Payor Bank

The bank on which a check is drawn and that is responsible for paying the amount of the check to the holder.

Collection Process

The steps taken by creditors or agencies to recover debts owed by individuals or businesses, often involving contacting the debtor, negotiating payment plans, and possibly legal action.

Demand Instrument

A financial document or instrument that requires payment of a particular sum of money immediately or on demand by the entitled party.