Calculation Of Profit Or Loss By Investing In Call Option


You wrote ten Call Option contracts on JIG stock with a strike price of $40 and an option price of $.40.

What is your net gain or loss on this investment if the price of JIG is $46.05 on the option expiration date?

A. -$6,450
B. -$5,650
C. $400
D. $5,650
E. $6,450
F. None of the above


The question belongs to Finance and it discusses about calculation of profit or loss on a call option investment.

Total Word Count 52

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