You bought 5 call option contracts on a stock when it is trading at $44.00. The exercise price of the call is $50 and the call was priced at $3.50. What is your profit or loss on this trade if the stock is trading at $52.00 at expiration date of the calls?

Answers:

a. $1,000

b. -$750

c. $4,000

d. $2,750

e. $2,250