You Sold Three $35 Call Option Contracts at a Quoted

question 92

Multiple Choice

You sold three $35 call option contracts at a quoted price of $1.40.What is your net profit or loss on this investment if the price of the underlying asset is $38.10 on the option expiration date?

• A)-$510
• B)-$90
• C)$90
• D)$510
• E)$930

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Definitions:

Situation Analysis

An assessment of the internal and external factors affecting an organization with the aim of identifying strengths, weaknesses, opportunities, and threats.

Distribution

The method of providing a product or service to consumers or business users who require it.

Hiring Freeze

A temporary halt in the recruitment of employees by an organization, usually due to financial constraints or organizational restructuring.

Production Costs

The total expense incurred in the manufacturing of a product or the delivery of a service, including raw materials, labor, and overhead costs.