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Mr. Smith purchased 5 listed XYZ Corporation July 50 calls and paid a $3 premium on each call. If the market price of XYZ Corporation

Mr. Smith purchased 5 listed XYZ Corporation July 50 calls and paid a $3 premium on each call. If the market price of XYZ Corporation was $45 and the calls expired, Mr. Smith would lose:

a) $1,000 b) $1,500 c) $2,000 d) $4,000

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