Walt Wrote a Put Option That Had a $15 Strike

question 19

Multiple Choice

Walt wrote a put option that had a $15 strike price on ABC stock when the stock price was $16 per share. The option premium was $3. What is the maximum profit (per share) that Walt can make on his option position?

• A) $2
• B) $3
• C) $15
• D) $16

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Definitions:

Chest Pain

A feeling of discomfort or pain in the chest area, which can be a symptom of various conditions ranging from digestive issues to heart-related problems.

Venipuncture

The puncture of a vein; the insertion of a needle into a vein for the purpose of obtaining a blood sample or instilling a substance.

Clench Fist

The act of closing the hand tightly, often as a physical expression of stress or anger.

Capillary Blood Sample

A small sample of blood obtained from a capillary bed, usually by pricking the skin, useful for various medical tests.