You Purchased Four TJH Call Option Contracts with a Strike

question 14

Multiple Choice

You purchased four TJH call option contracts with a strike price of $35 when the option was quoted at $.68.The option expires today when the value of TJH stock is $36.90.Ignoring trading costs and taxes,what is your total profit or loss on your investment?

• A)$510.00
• B)$488.00
• C)$429.70
• D)$620.00
• E)$489.50

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Definitions:

Tailings

The materials left over after the process of separating the valuable fraction from the uneconomic fraction of an ore.

Ore

A naturally occurring solid material from which a metal or valuable mineral can be extracted profitably.

Metamorphic Rock

Rock that was once one form of rock but has changed to another under the influence of heat, pressure, or some other agent without passing through a liquid phase.

Heat And Pressure

The combination of high temperature and force applied to a material, often leading to physical or chemical changes.