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

question 97

Multiple Choice

Suppose you purchase a call option for $5 and a strike price of $40.On the expiration day,the price of the stock is $55.What is the return on the call option if you hold your position until maturity?

• A)125%
• B)200%
• C)275%
• D)300%
• E)-100%

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Definitions:

Internal Network

A network confined to a single organization or location, typically for private and secure communication.

Collision Domains

Network segments where data packets can collide if two devices attempt to transmit simultaneously on the same network medium.

Unauthorized Entry

The act of accessing a computer system or network without permission.

Switch

A device for transmitting data on a network that makes decisions, based on the media access control address of the data, as to where the data is to be sent.