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You Bought Eight Call Option Contracts with a Strike Price

question 90

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You bought eight call option contracts with a strike price of $27.50 and a premium of $0.66.At expiration,the stock was selling for $26.90 a share.What is the total profit or loss on your option position if you did not exercise it prior to the expiration date?


Definitions:

Revenue Accounts

Accounts that record the income generated from the sale of goods and services, before any expenses are subtracted.

Income Summary

A temporary account used in the closing process that summarizes a company's revenues and expenses for the accounting period.

Revenue Account(s)

Accounts that track the income generated from the sale of goods or provision of services before any expenses are deducted.

J. Higgins, Withdrawals

The amount of money withdrawn by J. Higgins from a business for personal use, affecting the owner's equity.

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