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

question 75

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%

Recognize the environmental impacts and sustainability concerns associated with renewable energy sources.

Understand the applications and limitations of biomass as a renewable energy source.

Comprehend the potential and challenges of geothermal energy and hydrogen gas as alternative energy sources.

Discuss the role of energy policies and technologies in reducing dependence on non-renewable energy sources.

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Definitions:

Adulthood

The life stage following adolescence, involving greater physical, psychological, and social maturity.

Thoughts

Mental processes in which ideas, opinions, and beliefs are formulated, often as part of reasoning and cognition.

Non-normative

Events or experiences that do not follow the typical or expected life trajectory.

Age-graded

Refers to activities, expectations, or roles that are assigned based on an individual's age in a society.