Suppose You Bought 10 Smith Enterprise Call Options with a Strike

question 43

Multiple Choice

Suppose you bought 10 Smith Enterprise call options with a strike price of $52 at $2.75 per option.If the price of Smith stock is $56,what is your net profit (or loss) ? Ignore transaction costs.

• A) $0
• B) $12.50
• C) -$27.50
• D) $40

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Definitions:

Inconsistencies

Discrepancies or lack of agreement within data, theories, or between an individual's beliefs and behaviors, often leading to reevaluation or further investigation.

Introversion And Extraversion

Personality traits that describe, respectively, individuals who are more focused on internal thoughts and feelings, and those who seek external stimulation and social interaction.

Ergs

Ergs are basic drives or instinctive energies that motivate behavior, a concept found in various psychology and biology frameworks.

Character Orientations

Refers to the various ways individuals relate to the world, themselves, and others, as identified in psychological theories, emphasizing different attitudes and behaviors.