You purchased five call option contracts with a strike price of $40 and an option premium of $1.35. You closed your contract on the expiration date when the stock was selling for $42.50 a share. What is your total profit or loss on your option position?
A) -$50
B) -$10
C) $135
D) $385
E) $575

Question

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The Answer of You purchased five call option contracts with a strike price of $40 and an option premium of $1.35. You closed your contract on the expiration date when the stock was selling for $42.50 a share. What is your total profit or loss on your option position?
A) -$50
B) -$10
C) $135
D) $385
E) $575

You Purchased Five Call Option Contracts with a Strike Price