An Investor Purchases a Call Option in a Stock That

question 70

Multiple Choice

An investor purchases a call option in a stock that is currently selling for $50 per share on January 3, 2016. He pays $6 per share for the option with an exercise price of $57 and an expiration date of April 17, 2016. On April 16, 2016 the stock is selling for $58 and the investor exercises the option and immediately sells the stock. How much total gain or loss did the investor realize?

• A) - $500
• B) $100
• C) Breakeven
• D) $700

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Definitions:

Typical Adolescent Behavior

Refers to the common actions and demeanor expected from teenagers due to hormonal changes, including mood swings, seeking independence, and experimenting with identity.

Addiction

A chronic disorder characterized by compulsive engagement in rewarding stimuli, despite adverse consequences, leading to significant impairment or distress.

Illicit Use

The unauthorized or illegal consumption or use of substances or goods.

Intrinsic Motivation

The act of doing something without any obvious external rewards, driven by personal satisfaction or the enjoyment of the activity itself.