Tammy Smith Purchased a Call Option with a Striking Price

question 72

Multiple Choice

Tammy Smith purchased a call option with a striking price of $40 at a price of $3.50. At expiration, the stock price has risen to $45.00. What is Tammy's return on investment?

• A)3.75%
• B)11.1%
• C)12.5%
• D)42.9%

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Definitions:

Active Euthanasia

The deliberate action taken to end the life of a patient suffering from an incurable and painful condition at their request.

Durable Power

This term is usually associated with "Durable Power of Attorney," a legal document allowing one person to make decisions on behalf of another, especially in health matters.

Living Will

A legal document stating an individual's preferences regarding medical treatment in situations where they are unable to communicate their decisions.

Surrogate

A substitute or representative who takes on the roles or duties of another, such as in medical decisions or pregnancy.