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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:

Insurance Agent

A professional authorized to sell and service insurance policies, representing either one or multiple insurance companies.

Annuity

A monetary tool that disburses a set sequence of payments to a user, predominantly aimed at serving as a financial resource for retirees.

Rate Of Return

The upward or downward movement in an investment's value across a defined duration, detailed as a percentage of its initial expenditure.

Insurance Agent

A professional who sells, solicits, or negotiates insurance policies on behalf of an insurer.

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