Ahmad Bought Call Options on Home Depot with a Striking

question 16

Multiple Choice

Ahmad bought call options on Home Depot with a striking price of $34.The option premium was $3.50.Just before the contract expired,Home Depot stock was $36 per share.Ahmad:

• A)made a profit of $2.00 per share.
• B)lost $3.50 per share because the option would not be exercised.
• C)made a profit of $3.50 per share.
• D)lost $1.50 per share.