Tammy Smith Purchased a Call Option with a Striking Price

question 72

Multiple Choice

Tammy Smith purchased a call option with a striking price of $40 at a price of $3.50. At expiration, the stock price has risen to $45.00. What is Tammy's return on investment?

• A)3.75%
• B)11.1%
• C)12.5%
• D)42.9%

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Definitions:

Linkage Group

is a group of genes on a chromosome that tend to be inherited together, due to their physical proximity to each other.

Chromosome 19

One of the 23 pairs of chromosomes in humans, known for containing genes that are involved in a wide range of bodily functions and diseases.

Colorectal Cancer

A type of cancer that begins in the colon or rectum, part of the digestive tract, and can involve either malignant tumors or polyps.

Alleles

Different forms of a gene that arise by mutation and are found at the same place on a chromosome.