Katie Purchased 6 Call Options on Atlas Co

question 33

Multiple Choice

Katie purchased 6 call options on Atlas Co. stock with a strike price of $40. On the expiration date, the stock was priced at $38.95 a share. What is the total payoff on the option contracts?

• A)−$220.00
• B)−$55.00
• C)$0
• D)$2.20
• E)$55.00

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Definitions:

Wrapper Class

A class that encapsulates primitive data types into objects, allowing primitives to be used as objects.

Primitive Type

Basic data types provided by a programming language as building blocks, such as int, char, and float in Java.

Unboxing

The automatic conversion of an object of a wrapper class (like Integer or Boolean) back into its corresponding primitive type.

Math Method

Functions or routines in programming that perform mathematical operations such as addition, subtraction, multiplication, and division.