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You Wrote Five Call Option Contracts on MNO Stock with a Strike

Question 56

Multiple Choice

You wrote five call option contracts on MNO stock with a strike price of $25 and an option price of $.70.What is your total net profit or loss on all transactions related to this investment if the price of MNO is $24.70 on the option expiration date? Ignore taxes and transaction costs.


A) −$500
B) $350
C) −$350
D) $500
E) $425

Correct Answer:

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