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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?


Definitions:

Relational Operator

Operators that compare two values and determine the relationship between them, such as greater than, less than, equal to, etc.

Not

A logical operator that inverts the truth value of the operand.

CompareTo

A method in various programming languages that compares two values or objects, returning a numerical value indicating their relative order.

Greater Than Or Equal To

A relational operator that checks if the value on the left side is greater than or equal to the value on the right side.

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