Ruth Paid $300 for a Call Option on 100 Shares

question 98

Multiple Choice

Ruth paid $300 for a call option on 100 shares of stock. The option gives her the right to buy the stock for $37 per share until April 1. On March 15, the stock rises to $42 per share, and Ruth exercises her option, purchases the stock and then sells it in the market. What is Ruth's return on the option?

• A) 167%
• B) 67%
• C) 100%
• D) 150%

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