You Purchased Five CVB Call Option Contracts with a Strike

question 57

Multiple Choice

You purchased five CVB call option contracts with a strike price of $40 when the option was quoted at $3.65.The option expires today when the value of CVB stock is $43.Ignoring trading costs and taxes,what is your total profit on your investment?

• A)$0
• B)−$325
• C)$800
• D)$1,500
• E)−$1,825

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Definitions:

Antecedent

In logic and grammar, it refers to the conditional clause or phrase to which a pronoun refers back; in logic, also the first part of a conditional statement.

Consequent

The “then” component in a hypothetical proposition.

Disjunctive Premise

In logic, a premise that presents two or more options or possibilities, typically in an "either/or" format, one of which must be true.

Hypothetical Proposition

A statement that presents a conditional scenario, often structured in an "if-then" format, used to explore logical outcomes.