Suppose You Bought 10 Smith Enterprise Call Options with a Strike

question 83

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:

Ohio State

A reference to a significant body of leadership studies conducted at The Ohio State University focusing on leader behaviors and their effects on group performance and satisfaction.

University of Michigan

A public research university in Ann Arbor, Michigan, known for its comprehensive academic programs and research initiatives.

Path-goal Theory

A leadership theory that suggests leaders can increase subordinate satisfaction and performance by clarifying paths to goals and removing obstacles.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act based on their expectations of outcomes and rewards.