A Stock Currently Trades at $110

question 6

Multiple Choice

A stock currently trades at $110. June call options on the stock with a strike price of $120 are priced at $5.75. Calculate the dollar return on one call contract.

• A) -$1000
• B) $1000
• C) $575
• D) -$575
• E) $0

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Definitions:

Fluorescent Lights

A type of lighting that utilizes a phosphor coating inside a glass tube to produce light when an electric current causes a gas in the tube to glow.

Sleeper

A compartment attached to the cab of a semi-truck equipped with sleeping and living quarters for the driver.

Bunk Lights

Small, often LED, lights designed to illuminate sleeping or resting areas in vehicles like trucks or cabins in boats.

Pyrometer

An instrument used to measure very high temperatures, often in industrial processes and engines.