Hannah Monstz Is Looking to Purchase a Call Option on Thomas

question 5

Multiple Choice

Hannah Monstz is looking to purchase a call option on Thomas Co.,which is currently trading at $35.The call option has a strike price of $32.50 and has 6 months to expiration.If the options has a premium of $5,what is Hannah's maximum loss on the position?

• A) $5
• B) $2.50
• C) $32.50
• D) $35

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