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:

Job Evaluation Process

A systematic method for determining the relative worth or value of a job in relation to other jobs within an organization, typically considering factors such as complexity, responsibilities, and qualifications.

Pay Equity

The concept of ensuring that employees are compensated equally for work of equal value regardless of gender, race, or other unrelated factors.

Male Comparator Jobs

Reference occupations or roles typically dominated by men, used in evaluating job equality and assessing wage gaps against female-dominated jobs.

Inequitable Female Job Classes

Describes job categories or classifications that unfairly disadvantage women in terms of pay, opportunities, or treatment compared to male-dominated job classes.