You Bought a Put with a Strike Price of $35

question 56

Multiple Choice

You bought a put with a strike price of $35. The current stock price is $34. What is the current payoff value of this option?

• A)−$2
• B)−$1
• C)$0
• D)$1
• E)$2

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Definitions:

Discontinued Operations

Components of a business that have been disposed of or are classified as held for sale, and will not be continuing operations in the future.

Future Cash Flows

Estimated future financial earnings or expenses, which are used in various financial analyses to determine investment potential or project value.

Income Items

Generally refer to all the items that contribute to a company's net income, including revenue from sales, services, and other sources.

Reportable Segment

A component of a business that can be separately distinguished for financial reporting purposes, typically based on product line or geographic area.