Assume That You Have Purchased a Call Option with a Strike

question 3

Multiple Choice

Assume that you have purchased a call option with a strike price $60 for $5. At the same time, you purchase a put option on the same stock with a strike price of $60 for $4. If the stock is currently selling for $75 per share, calculate the dollar return on this option strategy.

• A) $10
• B) -$4
• C) $5
• D) $6
• E) $15

Understand the impact of historical and contemporary racial discrimination in shaping social and institutional practices.

Discuss the complexity of identifying and acknowledging personal privileges.

Appraise the influence of media and technology in propagating racial ideologies.

Explore legal and policy dynamics in the context of racial discrimination and equality efforts.

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Definitions:

Residual Income

The net income an investment or business venture generates above the minimum rate of return.

Minimum Required Rate

The lowest return rate that an investor or project manager would accept for an investment.

Residual Income

Income that remains after all costs and expenses, including minimum required return on investment, have been subtracted.

Operating Assets

Long-term assets used in the operations of a business, including property, plant, and equipment, that generate income.