You Purchased Four Call Option Contracts with a Strike Price

question 19

Multiple Choice

You purchased four call option contracts with a strike price of $40 and an option premium of $1.25. You closed your contract on the expiration date when the stock was selling for $42.50 a share. What is your total profit or loss on your option position?

• A)−$50
• B)−$10
• C)$135
• D)$385
• E)$500

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