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Suppose You Purchase a Call Option for $5 and a Strike

Question 97

Multiple Choice

Suppose you purchase a call option for $5 and a strike price of $40.On the expiration day,the price of the stock is $55.What is the return on the call option if you hold your position until maturity?


A) 125%
B) 200%
C) 275%
D) 300%
E) -100%

Correct Answer:

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