You Sold (Wrote) Five TWX Call Option Contracts with a Strike

Multiple Choice

You sold (wrote) five TWX call option contracts with a strike price of $40 when the option was quoted at $3.20. The option expires today when the value of TWX stock is $38.15. Ignoring trading costs and taxes, what is the total profit or loss on your investment?

A) -$1,600
B) -$675
C) $0
D) $500
E) $1,600