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

question 16

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%
• E)0%

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Definitions:

Emotional States

Conditions of feeling or affecting the mood of an individual, ranging from happiness and contentment to anxiety and sadness.

Average Happiness

A metric that attempts to measure the general level of satisfaction or well-being among a group of people or within a population.

Positive Emotions

Feelings that are generally beneficial for well-being, such as happiness, joy, contentment, and love.

Longitudinal Study

A research design that involves repeated observations of the same variables (e.g., individuals) over short or long periods of time.