You Buy a Call with a Strike Price of $55

question 83

Multiple Choice

You buy a call with a strike price of $55 on a stock that you have shorted at $55. If the call premium is $3.86 and the stock price at expiration is $49.12, what is your profit per share?

• A) $5.88
• B) $2.02
• C) $3.86
• D) -$3.86
• E) $1.62

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Definitions:

Ventilations

The movement of air between the environment and the lungs via inhalation and exhalation, used in respiratory processes.

Respiratory Center

Group of nerve cells in the medulla oblongata that sends out nerve impulses on a rhythmic basis, resulting in involuntary inspiration on an ongoing basis.

Intercostal Nerves

Nerves located between the ribs that play a role in the respiratory process by controlling the muscles of the chest wall.

Alveolar Walls

Thin layers of tissue forming the air sacs in the lungs, where gas exchange with the blood takes place.