What Is the Cost of Five November 25 Call Option

question 17

Multiple Choice

What is the cost of five November 25 call option contracts on KNJ stock given the following price quotes?

• A) $615
• B) $660
• C) $2,500
• D) $3,075
• E) $3,300

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Definitions:

Selective Serotonin Reuptake Inhibitors

A class of drugs typically used as antidepressants in the treatment of major depressive disorder, anxiety disorders, and some personality disorders by increasing serotonin levels in the brain.

Tricyclics

A class of antidepressant drugs that are used to treat depression by affecting neurotransmitters in the brain.

Major Depressive Disorder

A mental disorder characterized by a pervasive and persistent low mood accompanied by low self-esteem and loss of interest or pleasure in normally enjoyable activities.

Elavil

A brand name for the antidepressant drug amitriptyline, used primarily in the treatment of mood disorders.