Suppose You Purchase a Call Option for $4 and a Strike

question 30

Multiple Choice

Suppose you purchase a call option for $4 and a strike price of $30.On the expiration day,the price of the stock is $40.What is the return on the call option if you hold your position until maturity?

• A)125%
• B)130%
• C)150%
• D)170%
• E)250%

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Definitions:

Carbohydrates

Organic compounds, consisting of carbon, hydrogen, and oxygen, which are an essential source of energy for the body.

Binge Episode

An event of excessive indulgence in an activity, especially eating or drinking, over a short period of time.

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Large, complex molecules essential for the structure, function, and regulation of the body's tissues and organs, made up of amino acids.

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The act of deliberately vomiting, often used as an unhealthy method to control weight or relieve discomfort from overeating.