Jennifer sold a call option on XXX Corp. with an exercise price of $50 and a premium of $3. The option expires today and XXX is currently trading at $40. What is Jennifer's expected profit or loss per share?
A) -$3
B) $3
C) $7
D)$10

Name: Jennifer sold a call option on XXX Corp. with an exercise price of $50 and a premium of $3. The option expires today and XXX is currently trading at $40. What is Jennifer's expected profit or loss per share? A) -$3 B) $3 C) $7 D)$10
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Question

Jennifer sold a call option on XXX Corp. with an exercise price of $50 and a premium of $3. The option expires today and XXX is currently trading at $40. What is Jennifer's expected profit or loss per share?
A) -$3
B) $3
C) $7
D)$10

Quizplus · Accepted Answer

Profit = $3

Jennifer Sold a Call Option on XXX Corp