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

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Definitions:

Organisational Objectives

Goals and targets set by an organization to direct activities and measure success.

Standing Plans

Pre-established policies, procedures, and rules designed to guide actions and decision-making in an organization's recurring situations.

Strategic Plans

A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Single-use Plans

Specific plans developed to achieve a particular goal that is not expected to recur, used for unique or non-routine situations.