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

question 99

Multiple Choice

You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.65.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?


Definitions:

Authorized

Having been officially approved or given permission by a relevant authority.

Customer's Account

An account held by a brokerage or financial institution on behalf of a client, for the purpose of trading or managing securities and other financial assets.

Wire Transfer

An electronic method of transferring funds from one individual or institution to another without the exchange of physical money.

Across The Country

A phrase describing something that occurs or is present in various parts of a country.

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