Question: I need help with the following problem: You purchased four call option contracts with a strike price of $40 and an option premium of $1.25.

I need help with the following problem:

You purchased four call option contracts with a strike price of $40 and an option premium of $1.25. You closed your contract on the expiration date when the stock was selling for $42.50 a share. What is your total profit or loss on your option position?

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