You Wrote Eight Call Option Contracts with a Strike Price

question 85

Multiple Choice

You wrote eight call option contracts with a strike price of $42.50 at a call price of $1.35 per share.What is your net gain or loss on this investment if the price of the underlying stock is $40.30 per share on the option expiration date?

• A)-$2,840
• B)-$1,760
• C)-$1,080
• D)$1,080
• E)$1,760

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Definitions:

Glycogen

A multi-branched polysaccharide of glucose that serves as a form of energy storage in animals and fungi.

Fermentation

A metabolic process that produces chemical changes in organic substrates through the action of enzymes, often resulting in the production of alcohol or acids.

Aerobic Respiration

The process of producing cellular energy involving oxygen.

Cytoplasm

The jelly-like material within a cell, excluding the nucleus, containing various organelles and the cytoskeleton.