You Sold a Put Contract on EDF at an Option

question 13

Multiple Choice

You sold a put contract on EDF at an option price of €.40.The option had an exercise price of €20. The option was exercised.Today, EDF is selling for €19 a share.What is your total profit or loss on
All of your transactions related to EDF assuming that you close out your positions in this share
Today? Ignore transaction costs and taxes.

• A)-€140
• B)-€60
• C)€40
• D)€60
• E)€140

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Definitions:

Moral Development

The process through which individuals develop proper attitudes and behaviors towards other people in society, based on social and cultural norms, rules, and laws.

Preconventional

The first level in Kohlberg's theory of moral development, where moral understanding is based on rewards and punishments associated with different actions.

Conventional

Pertaining to accepted norms or standards in a society or a group.

Moral Issues

Concerns or questions about what is right and wrong, which can involve judgments about society, individuals, or actions.