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

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Definitions:

Homologous Pairs

Pairs of chromosomes that have the same structure and gene sequence, matching one inherited from each parent.

Meiosis I

The first division in meiosis, during which homologous chromosomes are separated, resulting in two daughter cells with half the number of chromosomes of the original cell.

DNA Replication

The process by which a double-stranded DNA molecule is copied to produce two identical DNA molecules.

Sister Chromatid

One of two identical copies of a chromosome that are connected by a common centromere.