You Bought Five Call Option Contracts with a Strike Price

question 83

Multiple Choice

You bought five call option contracts with a strike price of $47.50 and an option premium of $1.20.At expiration,the stock was selling for $51.30 a share and you exercised your option.What is your total cost basis in the acquired shares?

• A) $23,150
• B) $25,050
• C) $23,750
• D) $24,350
• E) $26,250

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Definitions:

Hemat

A prefix in medical terminology that relates to blood.

Mal-

A prefix added to the start of a word to indicate a negative quality or the act of doing something poorly or badly.

Amyl

A prefix referring to a compound formed from pentane by the replacement of a hydrogen atom with a functional group.

Cirrh-

A prefix in medical terminology indicating a relation to yellow, used in conditions related to liver dysfunction.