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

Question 101

Multiple Choice

Suppose you purchase a call option for $5 and a strike price of $20. On the expiration day, the price of the stock is $30. What is the return on the call option if you hold your position until maturity?


A) 25%
B) 50%
C) 75%
D) 100%

Correct Answer:

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