You Sold fiVe Put Options on Wexmeyer Stock with an Exercise

question 436

Multiple Choice

You sold five put options on Wexmeyer stock with an exercise price of $55 and an option price of $1.70. Today, the contracts expire and the stock is selling for $56.25 a share. What is your net profit
Or loss on this investment? Ignore trading costs and taxes.

• A) -$1,475
• B) -$225
• C) $225
• D) $850
• E) $1,475

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