You Purchased Five Call Option Contracts with a Strike Price

question 10

Multiple Choice

You purchased five call option contracts with a strike price of $40 and an option premium of $1.35. 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) $575

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