Suppose You Purchase a Call Option for $5 and a Strike

question 101

Multiple Choice

Suppose you purchase a call option for $5 and a strike price of $20. On the expiration day, the price of the stock is $30. What is the return on the call option if you hold your position until maturity?

• A) 25%
• B) 50%
• C) 75%
• D) 100%

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Definitions:

Preparatory Stage

A phase in child development according to George Herbert Mead, where children mimic or imitate others without understanding the underlying roles.

Role Stage

The phase or position that an individual occupies in a social structure, often defined by certain expectations, duties, and behaviors associated with that role.

Generalized Other

A concept in sociology referring to the internalized sense of society's values, norms, and expectations.

Looking-glass Other

A concept where an individual's self-concept is influenced by their perceptions of how others see them, effectively serving as a social mirror.