You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.65

The maximum value of a convertible bond is theoretically:    A.  equal to the conversion value minus the straight bond value. B.  equal to the face value of the bond multiplied by (1 + Conversion price). C.  limited to the maximum straight bond value. D.  limited by the face value of the bond. E.  unlimited. Refer to section 24.7

57.	What is the cost of two November $25 put option contracts on Dove stock given the following price quotes?        A.  $0.15 B.  $0.30 C.  $1.50 D.  $15.00 E.  $30.00 Cost = 2 × 100 × $0.15 = $30

58.	What is the value of five August $25 call contracts on Dove stock?        A.  $34 B.  $68 C.  $340 D.  $690 E.  $3,450 Contract value = 5 × 100 × $6.90 = $3,450

59.	What is the intrinsic value of the November $25 call on Dove stock?        A.  -$0.98 B.  $0 C.  $0.15 D.  $6.12 E.  $7.10 Intrinsic value = $31.12 - $25 = $6.12

60.

You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.65. The option expires today when the value of ABC stock is $34.60. Ignoring trading costs and taxes, what is the net profit or loss on this investment?    A.  $0 B.  $270 C.  $310 D.  $840 E.  $1,260 Total profit = ($34.60 - $32.50 - $1.65) × 100 × 6 = $270