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%

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Definitions:

Mutually Beneficial

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Combination Résumé

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