You Sold Five Put Option Contracts on QLN Stock with an Exercise

question 405

Multiple Choice

You sold five put option contracts on QLN stock with an exercise price of $45 and an option price of $2.20. Today, the option expires and the underlying stock is selling for $38.65 a share. Ignoring trading costs and taxes, what is the total profit or loss on this investment?

• A) -$2,075
• B) -$415
• C) $855
• D) $1,100
• E) $4,275

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