Suppose You Purchase a Call Option for $5 and an Exercise

question 54

Multiple Choice

Suppose you purchase a call option for $5 and an exercise price of $20. On the expiration day, the price of the share is $30. What is the return on the call option if you hold your position until maturity?

• A)50%
• B)75%
• C)100%
• D)25%

---

Definitions:

Planning Gap

The difference between targeted performance results and actual outcomes, highlighting areas that require corrective action or revised strategies.

Life Cycle

The series of stages a product goes through from introduction to growth, maturity, and decline in the market.

Marketing Objectives

Goals set by a business when promoting its products or services to potential consumers that should be achieved within a given timeframe.

Marketer

An individual or organization that seeks to understand the needs of consumers and engages in practices designed to influence their purchasing decisions and experiences positively.