You Wrote Eight Call Option Contracts on JIG Stock with a Strike

question 85

Multiple Choice

You wrote eight call option contracts on JIG stock with a strike price of $40 and an option price of $.40.What is your net gain or loss on this investment if the price of JIG is $46.05 on the option expiration date?

• A)-$5,450
• B)-$4,520
• C)$400
• D)$4,250
• E)$5,450

---

Definitions:

Frequency

The rate at which a periodic event occurs, such as the number of occurrences of a repeating event per unit of time.

Amplitude

The magnitude or intensity of a wave's oscillation, such as in sound waves or electromagnetic waves, indicating the strength or power of the wave.

Sound Waves

Audible waves that transit through the air or various media, detectable when they come into contact with the auditory organs of humans or animals.

Alpha Waves

These are brain waves detected by electroencephalography (EEG), typically indicating a state of wakeful relaxation.