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:

Trust Game

A psychological experiment used to measure the trustworthiness and willingness of individuals to cooperate.

Prisoner's Dilemma Game

A scenario in game theory where individuals acting in their own self-interest achieve worse outcomes than if they had cooperated.

Bystander Dilemma

A social psychological scenario where individuals are less likely to help a victim when other people are present.

Forgiveness Game

A conceptual exercise or theoretical scenario used to study the process and effects of forgiveness in social and psychological contexts.