Katie Purchased 6 Call Options on Atlas Co

question 76

Multiple Choice

Katie purchased 6 call options on Atlas Co.stock with a strike price of $40.00.On the expiration date,the stock was priced at $38.95 a share.What is the total payoff on the option contracts?

• A)-$220
• B)-$55
• C)$0
• D)$2.20
• E)$55

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Definitions:

Cold Currents

Ocean currents that move cold water from polar or temperate regions towards the equator, influencing regional climates and marine ecosystems.

July SST's

Sea Surface Temperatures measured globally or regionally in the month of July.

Monsoons

Monsoons are seasonal wind patterns that cause wet and dry seasons throughout much of the tropics, bringing significant rainfall during part of the year.

Seasonal Heating

The variation in temperature and climate that occurs in a specific region during different times of the year due to the tilt of the Earth's axis.