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You Purchased 6 Call Options with a $40 Strike Price

question 44

Multiple Choice

You purchased 6 call options with a $40 strike price at a total cost of $150. On the expiration date, the underlying stock was priced at $39.20. What is the percentage return on your investment?


Definitions:

Price Lining

A pricing strategy that sets a limited number of prices for a specific category of products, thereby simplifying the choices available to consumers.

Demand-oriented

A pricing strategy where the price is set based on consumer demand, often adjusting prices in response to market conditions.

Target Pricing

A pricing strategy in which the selling price of a product is determined based on the desired profit margin and market conditions.

Ultimate Consumers

The end users who purchase products or services for personal use and not for manufacturing or resale purposes.

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