Jenny Purchased 2 Put Option Contracts on Winslow Mfg

question 8

Multiple Choice

Jenny purchased 2 put option contracts on Winslow Mfg. stock. The option premium was $.80 and the strike price was $37.50. On the expiration date, the stock was selling for $38.00 a share. What is the total payoff on the option contracts?

• A)−$100
• B)−$50
• C)$0
• D)$50
• E)$150

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