You purchased five call options with a $37.50 strike price and a call premium of $1.35. On the expiration date, the underlying stock was priced at $37.30. What is the percentage return on your investment?
A) -100%
B) -8.5%
C) 14.8%
D) 15.6%
E) 17.3%

Question

Quizplus · Accepted Answer

Since the stock price ($37.30) is below the strike price ($37.50) at expiration, the options expire worthless. This means the entire investment in the call premium is lost, resulting in a -100% return.

You Purchased Five Call Options with a $37