Suppose You Purchase a Call Option for $4 and an Exercise

question 69

Multiple Choice

Suppose you purchase a call option for $4 and an exercise price of $30. On the expiration day, the price of the share is $40. What is the return on the call option if you hold your position until maturity?

• A)170%
• B)150%
• C)130%
• D)125%

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Definitions:

Consumers' Incomes

The total amount of money earned by the population, affecting purchasing power and consumer behavior in the economy.

Epidemic

A widespread occurrence of an infectious disease in a community at a particular time.

Fuel-Efficient

describes vehicles or machinery that use less fuel to achieve a certain distance or task, thereby reducing fuel consumption and emissions.

Equilibrium Price

Prevailing market price at which you can buy an item.