You Purchased Six TJH Call Option Contracts with a Strike

question 89

Multiple Choice

You purchased six TJH call option contracts with a strike price of $40 when the option was quoted at $2. The option expires today when the value of TJH stock is $43. Ignoring trading costs and taxes,what is your total profit or loss on your investment?

• A) $6
• B) $600
• C) $800
• D) $1,200
• E) $1,800

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Definitions:

Behaviourist

A psychologist or scientist who studies and interprets human and animal behavior based on observable actions and reactions, emphasizing the role of environmental stimuli.

Nature

A term often used to refer to the genetic or inherent traits and characteristics that determine an individual’s physical and psychological qualities.

Nurture

The influence of external factors like education, environment, and social experiences on the development of an individual.

Physiological Processes

The functions and activities carried out by living organisms to maintain life, including respiration, digestion, and reproduction.