You Bought Five Call Option Contracts with a Strike Price

question 83

Multiple Choice

You bought five call option contracts with a strike price of $47.50 and an option premium of $1.20.At expiration,the stock was selling for $51.30 a share and you exercised your option.What is your total cost basis in the acquired shares?

• A) $23,150
• B) $25,050
• C) $23,750
• D) $24,350
• E) $26,250

---

Definitions:

Council on Environmental Quality

A federal agency within the Executive Office of the President that advises on environmental policies and strategies.

Transporter

An entity or individual involved in the movement of goods or people from one location to another.

Comprehensive Environmental Response, Compensation, and Liability Act

A U.S. federal law, enacted in 1980, designed to clean up sites contaminated with hazardous substances.

Potentially Responsible Parties

Individuals or entities that may be liable for contamination at a hazardous waste site under environmental laws.