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Suppose You Purchase a Call Option for $4 and a Strike

Question 50

Multiple Choice

Suppose you purchase a call option for $4 and a strike price of $30. On the expiration day, the price of the stock is $40. What is the return on the call option if you hold your position until maturity?


A) 125%
B) 130%
C) 150%
D) 170%

Correct Answer:

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