You Purchased Four Put Option Contracts with a Strike Price

question 84

Multiple Choice

You purchased four put option contracts with a strike price of $34.5 and a premium of $.85. What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $31.50 a share?

• A)$13,460
• B)$13,700
• C)$15,740
• D)$16,340
• E)$16,400

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Definitions:

Ossification

The process of bone growth.

Endochondral

A type of ossification in which bones start out as cartilage models.

Occipital Bone

a bone situated at the lower back part of the skull, supporting the back of the head and containing the foramen magnum.

Foramen Magnum

The large opening at the base of the skull through which the spinal cord passes to connect with the brain.