You Purchased Six Call Option Contracts on ABC Stock with a Strike

question 73

Multiple Choice

You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.80. The option expires today when the value of ABC stock is $34.60. Ignoring trading costs and taxes, what is the net profit or loss on this investment?

• A)$0
• B)$180
• C)$210
• D)$840
• E)$1,260

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Definitions:

Underweight

A condition characterized by a body weight considered too low to be healthy, potentially leading to various health issues.

Relationship Maintenance

The actions and activities used to sustain the desired quality of a relationship.

Active Relationship Maintenance

Efforts made consciously by individuals in a relationship to preserve, protect, and enhance their connection.

Assurance

A positive declaration intended to give confidence; a promise.