You Bought a Call Option with a Strike Price of $40

question 95

Multiple Choice

You bought a call option with a strike price of $40. What is your total payoff on this option contract if the underlying stock is selling for $42.70 on the option expiration date?

• A)$3
• B)$70
• C)$133
• D)$233
• E)$270

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Definitions:

Seafloor Spreading

The process where new ocean floor is created at mid-ocean ridges and moves away caused by the divergence of tectonic plates.

Active Site

The region on an enzyme where substrate molecules bind and undergo a chemical reaction, crucial for the enzyme's biological function.

Oldest Seafloor

The parts of the oceanic crust that are the most aged, often farthest from mid-ocean ridges where new crust is formed.

Oceanic Trench

Deep, narrow depressions in the ocean floor, formed by the subduction of one tectonic plate beneath another.