What Is the Option Buyer's Total Profit or Loss Per

question 109

Multiple Choice

What is the option buyer's total profit or loss per share if a call option is purchased for a $5 premium, has a $50 exercise price, and the stock is valued at $53 at expiration?

• A) -$5
• B) -$2
• C) $3
• D)$8

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Definitions:

Treaty of Detroit

This historically refers to any of several agreements made in the 18th and early 19th centuries, often involving land transactions or peace treaties between Native American tribes and colonial or federal governments around the Detroit area.

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A labor union in the United States and Canada representing workers in the automotive industry, advocating for workers' rights and benefits.

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An American multinational corporation headquartered in Detroit, Michigan, that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Sunbelt

A region in the United States defined by its warm climate, extending across the Southeast and Southwest, notable for its significant economic growth and population increase in the late 20th century.