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A Speculator Purchased a Call Option with an Exercise Price

question 66

Multiple Choice

A speculator purchased a call option with an exercise price of $31 for a premium of $4. The option was exercised a few days later when the stock price was $34. What was the return to the speculator?


Definitions:

Alliterative

The occurrence of the same letter or sound at the beginning of adjacent or closely connected words.

Test Screenings

Pre-release viewings of movies or TV shows to a selected audience aimed at gathering feedback to make final adjustments.

Tracking Studies

Research methods used to monitor changes in consumer behavior, brand performance, or market trends over time.

Sneak Preview

An early showing or release of a product or media content to a selected audience before the general public.

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