You purchased 6 call options with a $40 strike price at a total cost of $150.On the expiration date,the underlying stock was priced at $39.20.What is the percentage return on your investment?
A) -420 percent
B) -100 percent
C) 68.75 percent
D) 2.02 percent
E) 220 percent

Question

Quizplus · Accepted Answer

Percentage return = {[6 × 100 × 0] - $150} / $150 = -100 percent
The call is worthless because the strike price exceeds the stock price.

You Purchased 6 Call Options with a $40 Strike Price