Joe Sold a Put Option on ZZZ Corp

question 88

Multiple Choice

Joe sold a put option on ZZZ Corp.with an exercise price of $40.The option expires tomorrow and ZZZ is currently trading at $28 per share.The option premium was $4 per share.What is Joe's profit <loss> per share if the option is exercised tomorrow?

• A)($16)
• B)($8)
• C)$8
• D)$16

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Definitions:

Conductive Hearing Loss

A type of hearing loss that occurs when sound is not efficiently conducted through the outer ear canal to the eardrum and the tiny bones of the middle ear.

Cerumen Impaction

A blockage in the ear canal due to the buildup of earwax (cerumen), which can lead to hearing issues and discomfort.

Effective Communication

The ability to convey information to another effectively and efficiently.

Enunciating

The act of pronouncing words clear and distinctively.