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?

• A)$0
• B)$270
• C)$310
• D)$840
• E)$1,260

---

Definitions:

Performance Measures

Performance measures are various metrics used to assess, compare, and track the efficiency, productivity, and success of an organization's activities.

Employee Turnover Percentage

A metric that measures the rate at which employees leave a company and are replaced over a particular period.

Performance Measure

Metrics or indicators used to evaluate the effectiveness and efficiency of an individual, organization, or process.

Inspection

The act of reviewing and examining materials, products, or processes for quality and conformance to specifications or standards.