You Bought a Call Option with a Strike Price of $40.What

question 70

Multiple Choice

You bought a call option with a strike price of $40.What is your total payoff on this option contract if the underlying stock is selling for $42.70 on the option expiration date?

• A) $3.00
• B) $70.00
• C) $133.00
• D) $233.00
• E) $270.00

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Definitions:

Government-regulated Benefit

A form of benefit mandated by law that employers must provide to their employees, such as social security or health insurance.

Rest Breaks

Short periods of time given to employees during work hours to rest and recover, contributing to better health, wellbeing, and productivity.

Dental Plan

A type of health insurance that covers a portion of the costs associated with dental care, including preventative services, treatments, and surgeries.

Tax Consequences

Refers to the fiscal impact of business decisions or personal actions on one's taxable income and liability.