You Purchased Three Call Option Contracts with a Strike Price

question 77

Multiple Choice

You purchased three call option contracts with a strike price of $22.50 and an option premium of $0.45.You held the option until the expiration date.On the expiration date,the stock was selling for $21.70 a share.What is the total profit or loss on your option position?

• A) -$45
• B) $0
• C) -$240
• D) -$120
• E) -$135

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Definitions:

Adaptations

Physical or behavioral changes in organisms that enhance their ability to survive and reproduce in specific environments.

Interspecific Competition

A form of competition in which individuals of different species compete for the same resource in an ecosystem.

Fire Ant

A type of ant known for its aggressive behavior and painful sting, often causing ecological problems where they are introduced outside their native range.

Native Ant

A species of ant indigenous to a specific region or habitat, adapted to its local environmental conditions.