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

Understand the purpose and interpretation of ANOVA tests in multiple regression analysis.

Recognize the issues related to multicollinearity in regression models.

Differentiate between simple, multiple, and correlation analyses and their applications.

Interpret regression model coefficients and their significance in relation to dependent and independent variables.

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Definitions:

Population Drop

A significant decline in the number of individuals within a population, which can be caused by factors such as disease, famine, or conflict.

Genetic Modification

The process of altering the genetic material of an organism in a way that does not occur naturally, often to enhance desired traits or produce new characteristics.

Plants and Animals

Encompass all living organisms classified under the kingdom Plantae and Animalia, covering a wide range of life forms from trees and flowers to mammals and insects.

Fertility Rate

A demographic measure reflecting the average number of children a woman would have over her lifetime, often used to assess population growth or decline.