Suppose You Purchase One Texas Instruments August 75 Call Contract

question 64

Multiple Choice

Suppose you purchase one Texas Instruments August 75 call contract quoted at $8.50 and write one Texas Instruments August 80 call contract quoted at $6.If,at expiration,the price of a share of Texas Instruments stock is $79,your profit would be _________.

• A) $150
• B) $400
• C) $600
• D) $1,850

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Definitions:

Conduct Electricity

The ability of a material to allow the flow of charge or electric current through it.

Covalent Bonds

Chemical bonds formed by the sharing of electron pairs between atoms, providing stability in molecular structures.

Charged Particles

Ions or electrons that carry an electric charge, either positive or negative.

Hydrogen Bonds

A type of weak chemical bond that is formed when the slightly positive hydrogen atom of one molecule is attracted to the slightly negative atom of another molecule, such as oxygen or nitrogen.