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

---

Definitions:

Outside Directors

Board members who are not part of the company's executive team, providing independent oversight.

Board Of Directors

A group of individuals elected to represent shareholders and oversee the management and policy decisions of an organization.

Priority Directors

Directors within a corporation or board who are given precedence for specific tasks or decision-making processes.

Government Agencies

Organizations established by a government to carry out specific government functions.