You Sold Ten Put Option Contracts on PLT Stock with an Exercise

question 29

Multiple Choice

You sold ten put option contracts on PLT stock with an exercise price of $32.50 and an option price of $1.10. Today,the option expires and the underlying stock is selling for $34.30 a share. Ignoring trading costs and taxes,what is your total profit or loss on this investment?

• A) -$2,900
• B) -$1,100
• C) $700
• D) $1,100
• E) $2,900

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