Assume That You Purchased Shares of a Stock at a Price

question 15

Multiple Choice

Assume that you purchased shares of a stock at a price of $35 per share. At this time, you purchased a put option with a $35 strike price of $3. The stock currently trades at $40. Calculate the dollar return on this option strategy.

• A) $3
• B) -$2
• C) $2
• D) -$3
• E) $0

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