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You Purchased Six Call Option Contracts on ABC Stock with a Strike

Question 54

Multiple Choice

You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.65.The option expires today when the value of ABC stock is $34.60.Ignoring trading costs and taxes,what is the net profit or loss on this investment?


A) $0
B) $270
C) $310
D) $840
E) $1,260

Correct Answer:

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