If an Investor Buys a Call with a Strike Price

question 26

Multiple Choice

If an investor buys a call with a strike price of $90 and the underlying stock at the time of expiration is $96, what is her profit or loss per share if she paid the writer $4 a share?

• A) $2
• B) $1
• C) -$1
• D) -$2

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Definitions:

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