You Purchased Three WXO 15 Call Option Contracts at a Quoted

question 34

Multiple Choice

You purchased three WXO 15 call option contracts at a quoted price of $.44.What is your net gain or loss on this investment if the price of WXO is $15.70 on the option expiration date?

• A)−$132
• B)−$116
• C)$78
• D)$54
• E)$109

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Definitions:

Roof Tiles

Specially designed pieces, typically made of clay, concrete, metal, or synthetic materials, used to cover roofs.

Destination Contract

A contract specifying that the seller will bear the risk and the cost of delivering goods to a specific location.

Shipment Contract

A contractual agreement where the seller is obligated to transport goods to a specific destination, with risk passing to the buyer when the goods are delivered to the carrier.

F.O.B. Hilltop Farm

A shipping term indicating that the buyer assumes responsibility for the goods once they are shipped from Hilltop Farm.