You Purchased Six Put Option Contracts with a Strike Price

question 60

Multiple Choice

You purchased six put option contracts with a strike price of $29.50 and a premium of $.95. At expiration, the stock was selling for $26.70 a share. What is the total net amount you received for your shares assuming that you disposed of your shares on the expiration date?

• A)$17,955
• B)$17,100
• C)$17,045
• D)$17,815
• E)$17,130

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Definitions:

Expenses

Costs incurred in the operation of a business or the execution of a task.

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Financial accounts held by a trustee for the benefit of a third party according to the terms of a trust agreement.

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The total amount of money earned by an individual or company before any deductions such as taxes or benefits.

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Taxes levied by a government directly on income, both earned (salaries, wages, commissions) and unearned (dividends, interest, rents).