Suppose You Purchase a Call Option for $4 and a Strike

question 50

Multiple Choice

Suppose you purchase a call option for $4 and a strike price of $30. On the expiration day, the price of the stock is $40. What is the return on the call option if you hold your position until maturity?

• A) 125%
• B) 130%
• C) 150%
• D) 170%

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Definitions:

Neuroanatomy

The field of anatomy focused on examining the nervous system's composition and arrangement.

Test-Retest Reliability

The degree to which a test yields the same results when it is given more than once to the same person. Test-retest reliability can be evaluated by correlating a person’s score on a given test with the same person’s score on the same test taken at a later time. The higher the correlation between the two scores (as expressed in terms of a correlation coefficient) the more reliable it is.

Psychological Test

A standardized instrument or systematic procedure designed to evaluate a specific aspect of an individual's mental health, intelligence, or aptitude.

Personality Type

A classification of individuals based on their characteristic patterns of thoughts, feelings, and behaviors.