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You Purchased Three Call Option Contracts with a Strike Price

question 77

Multiple Choice

You purchased three call option contracts with a strike price of $22.50 and an option premium of $0.45.You held the option until the expiration date.On the expiration date,the stock was selling for $21.70 a share.What is the total profit or loss on your option position?


Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing stocks, paying dividends, and borrowing loans.

Statement Of Cash Flows

A financial report that details the inflows and outflows of cash within a company over a specific period, indicating its operational, investing, and financing activities.

Financing Activities

Transactions and events affecting the long-term liabilities and equity of a company, including issuing debt, repaying loans, and distributing dividends.

Net Cash

The amount of cash that is remaining after all cash inflows and outflows have been accounted for, over a specific period.

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