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HI there Sorry to ask straight out but I have trouble grasping the calculation for the following scenario. Ted buys 50 CALL option contracts Exercise

HI there

Sorry to ask straight out but I have trouble grasping the calculation for the following scenario.

Ted buys 50 CALL option contracts Exercise price $10.00 per share; Premium $0.50; Spot price at expiry $8.00

QUESTION: How much does it cost to purchase the 50 contracts? (Ignoring brokerage costs)

I've attempted multiple time, I'm sure I know the answer but could you please show me the calculation.

Much appreciated

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