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%

Understand the concept of etiology within the context of abnormal psychology.

Recognize the significance of interactionist explanations in understanding human behavior.

Comprehend early physiological indicators of panic attacks.

Define and understand dementia and its impact on cognitive processes.

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Definitions:

Memory Sin

A term referring to the various kinds of inaccuracies or errors that human memory is prone to, such as transience, absent-mindedness, misattribution, and suggestibility, among others.

Decay

In the context of science, it often refers to the process by which organic substances break down into simpler forms of matter; in physics, it can refer to the decrease in number or function of particles over time.

Commission

A fee paid to an agent or employee for facilitating a sale or service.

Hypnotism

A psychological technique involving inducing a state of intense concentration or trance-like state, aimed at heightening suggestibility and relaxation.