You Purchase 5 Call Option Contracts on ABC Stock with a Price

question 80

Multiple Choice

You purchase 5 call option contracts on ABC stock with a price of $3.26 and a strike price of $45. At expiration, the stock price is $51.24. What is your payoff?

• A) $3,120
• B) $1,630
• C) $1,080
• D) $1,490
• E) $2,460

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Definitions:

Flexed

The state of being bent or tensed, often referring to a muscle contraction that decreases the angle between bones at a joint.

Abducted

The movement of a limb or other part away from the midline of the body or from another part.

Pivot Joint

A type of synovial joint that allows rotation around a single axis, as seen in the neck between the first and second cervical vertebrae.

Intercarpal

Pertaining to the joints and movements between the carpal bones of the wrist.