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:

Sleep Terror

A sleep disorder causing feelings of panic or dread, typically occurring during the first hours of stage 3-4 non-REM sleep and often remembered only partially.

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