Assume That You Purchased Shares of a Stock at a Price

question 93

Multiple Choice

Assume that you purchased shares of a stock at a price of $35 per share. At this time, you wrote a call option with a $35 strike and received a call price of $2. The stock currently trades at $70. Calculate the dollar return on this option strategy.

• A) $25
• B) -$2
• C) $2
• D) -$25
• E) $0

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Definitions:

Int Array

A collection of integers stored in a contiguous memory location allowing indexed access.

For Loop

A control flow statement for specifying iteration, which allows code to be executed repeatedly based on a given boolean condition.

Sum

The result of adding two or more numbers or terms together, representing the total value.

Actual Parameter

A value or variable passed to a function or procedure when it is called, representing the actual input.