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:

Intoxication

Intoxication is a physiological condition that results from the ingestion of substances such as alcohol or drugs, leading to impaired cognitive and physical abilities.

Tolerance

The process of becoming less responsive to a substance (such as drugs) or a stimulus after repeated exposure.

Withdrawal

The process of reducing or eliminating the use of a substance, characterized by a set of symptoms that can vary in severity depending on the substance and duration of use.

Substance Use Disorder

A mental disorder characterized by the harmful and compulsive use of psychoactive substances, leading to significant impairment or distress.