You Purchased Five TJH Call Option Contracts with a Strike

question 26

Multiple Choice

You purchased five TJH call option contracts with a strike price of $40 when the option was quoted at $1.30.The option expires today when the value of TJH stock is $41.90.Ignoring trading costs and taxes,what is your total profit or loss on your investment?

• A)$60
• B)$300
• C)$360
• D)$420
• E)$540

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