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Suppose you pay $5,000 to buy an alternative call option with the following terms: -the underlying asset is 1,000 shares of AAPL OR 1,000 shares

Suppose you pay $5,000 to buy an alternative call option with the following terms:

-the underlying asset is 1,000 shares of AAPL OR 1,000 shares or SSNG

-the strike price for AAPL is 175

-the strike price for SSNG is 225.

What is the NET profit for this trade if, on the expiration date, AAPL settles at 200 and SSNG settles at 249?

  • A.

    $20,000

  • B.

    $49,000

  • C.

    $44,000

  • D.

    $25,000

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