You Purchased 7 Put Option Contracts on Alto Industries

question 67

Multiple Choice

You purchased 7 put option contracts on Alto Industries. The strike price was $42.50 and the option premium was $1.30. On the expiration date, the stock was valued at $41.40 a share. What is the payoff on the option contracts?

• A)−$140
• B)$0
• C)$110
• D)$360
• E)$770

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Definitions:

Quality-Of-Life Philosophy

An approach prioritizing the enhancement of an individual's overall wellbeing and satisfaction with life, often in healthcare contexts.

Passive Euthanasia

The withholding of treatment, which, in essence, hastens death and allows the individual to die naturally.

American Medicine

The practice and study of medicine as it is conducted and applied in the United States.

Medical Decisions

Choices made regarding an individual's health care, including treatments, procedures, and end-of-life care, based often on ethical and medical considerations.