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You Bought Five Call Option Contracts with a Strike Price

Question 85

Multiple Choice

You bought five call option contracts with a strike price of $47.50 and an option premium of $1.20.At expiration,the stock was selling for $51.30 a share and you exercised your option.What is your total cost basis in the acquired shares?


A) $23,150
B) $25,050
C) $23,750
D) $24,350
E) $26,250

Correct Answer:

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