You Purchased Four TJH Call Option Contracts with a Strike

question 67

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:

Unemployment Rate

The unemployment rate is the percentage of the labor force that is jobless and actively looking for employment.

Natural Rate

The rate of output at which an economy operates without inflationary pressures, often referred to as the natural rate of unemployment.

Phillips Curve

A concept in economics that indicates an inverse relationship between the rate of unemployment and the rate of inflation within an economy.

Inflation Rate

The rise in the average cost of goods and services throughout an economy over a specified period.