You wrote three call option contracts with a strike price of $55 and an option premium of $.70. What is your net gain or loss on this investment if the price of the underlying stock is $53.30 on the
Option expiration date?
A) -$720
B) -$300
C) -$210
D) $210
E) $720

Question

Quizplus · Accepted Answer

Since the stock price is below the strike price at expiration, the options expire worthless. You keep the premium received: 3 contracts * 100 shares/contract * $0.70 = $210.

You Wrote Three Call Option Contracts with a Strike Price