Calculate the Return on Exercising a Put Option That Was

question 63

Multiple Choice

Calculate the return on exercising a put option that was purchased for $10, with an exercise price of $85. The stock price at expiration is $81.

• A) -60%
• B) 60%
• C) 30%
• D)-30%

---

Definitions:

Parenting Plan

A parenting plan is a document that divorced or separated parents create to outline how they will raise their children post-separation.

Sole Legal Custody

A legal arrangement where only one parent has the right to make major decisions regarding the child’s welfare, education, and health.

Joint Physical Custody

A legal arrangement where children live and spend significant time with both parents after separation or divorce.

Stepparents

Individuals who are married to a biological parent of a child and may take on parental responsibilities without being the child’s biological parent.