Multiple Choice
If an investor buys a 100-share call option for $325 with an exercise price of $15 and the underlying price per share of the stock at expiration is $13, what is the amount of profit or loss, ignoring brokerage fees?
A) There would be a profit of $525.
B) There would be a loss of $125.
C) There would be a loss of $325.
D) There would be a loss of $525.
Correct Answer:
Verified
Correct Answer:
Verified
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