16. You bought twelve call option contracts with a strike price of $27.50 and a premium of S0.77. At expiration, the stock was selling for $29.90 a share. What is the total profit or loss on your option position if you did not exercise it or sell it prior to the expiration date? 17. Which one of the following is a derivative asset? A. common stock B. option contract C. government bond D. preferred stock E. corporate bond 18. Which one of the following represents a residual ownership interest in the issuer? A.U.S. Treasury bond B. corporate bond C. municipal bond D. preferred stock E. common stock 19. The price paid to purchase an option contract is called the: A. strike price. B. option premium C. exercise price. D. future premium E. current yield. 20. Larry sold one August futures contract on corn. Larry will: A. have to pay for the corn when it is delivered in August B. most likely buy an August futures contract to offset this contract. C. take delivery of the corn in August D. pay for the corn now and accept delivery in August. E. receive payment for the corn now and will deliver the corn in August