Three Months Back You Bought for $4 a Put Option

question 67

Multiple Choice

Three months back you bought for $4 a put option on a stock with an exercise price of $100.If the stock price at expiration of this option is $92, what is your return on investment?

• A)200 percent
• B)150 percent
• C)100 percent
• D)50 percent

---

Definitions:

Psychological Interpretation

The process of understanding behaviors, thoughts, and emotions through frameworks and theories in psychology.

Spearman-Brown

A formula used in psychology to estimate the reliability of a test, especially when lengthening or shortening it.

Kaiser-Guttman

A method in factor analysis for determining the number of factors to retain, based on the eigenvalues of the factors, where factors with eigenvalues greater than 1 are considered significant.

Alpha

A term used to describe a dominant individual, often in the context of social hierarchies within animal or human groups.