You Sold Twenty Put Contracts on Twin City Stock at an Option

question 140

Multiple Choice

You sold twenty put contracts on Twin City stock at an option premium of $.90. The options have an exercise price of $27.50. The options were exercised today when the stock price was $22.40 a
Share. What is your net profit or loss on this investment assuming that you closed out your positions
At a stock price of $22.40? Ignore transaction costs and taxes.

• A) -$12,000
• B) -$8,400
• C) $1,800
• D) $8,400
• E) $12,000

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Definitions:

Mobbing

A form of bullying in which an individual is harassed or attacked by a group, often within a workplace or institutional setting.

Bullying

Involves repeated aggressive behavior with the intention to hurt another person, physically or mentally.

Workplace Bullying

Repeated, health-harming mistreatment of an employee by coworkers or superiors, including verbal abuse, threats, and other forms of intimidation.

Assaulted

Describes being the target of a physical attack or harm by another individual or group.