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You Pay $3

Question 1

Multiple Choice

You pay $3.25 for a call option on Luther Industries that expires in three months with a strike price of $40.00.Three months later,at expiration,Luther Industries is trading at $41.00 per share.Your profit per share on this transaction is closest to:


A) -$1.00.
B) $1.00.
C) -$2.25.
D) $2.25.

Correct Answer:

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