A Stock Currently Trades at $110

question 35

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:

Alliances

Associations formed between countries, organizations, or individuals for mutual benefit or to achieve common goals.

Organize

To arrange and coordinate activities or items systematically for efficiency or clarity.

Plaintiff

An individual or group that brings a lawsuit against another party in a court of law, alleging harm or wrongdoing.

Defendant

An individual, company, or institution sued or accused in a court of law.