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Question(s) / Instruction(s):

Suppose you believe that Johnson Company\\\'s stock price is going to increase from its current level of $22.50 sometime during the next 5 months. For $310.25 you can buy a 5-month call option giving you the right to buy 100 shares at a price of $25 per share. If you buy this option for $310.25 and Johnson\\\'s stock price actually rises to $45, what would your pre-tax net profit be?

A             -$310.25

B             $1,689.75

C             $1,774.24

D             $1,862.95

E              $1,956.10

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