The Price of a Stock on February 1 Is $48

question 7

Multiple Choice

The price of a stock on February 1 is $48.A trader sells 200 put options on the stock with a strike price of $40 when the option price is $2.The options are exercised when the stock price is $39.The trader's net profit or loss is

• A) Loss of $800
• B) Loss of $200
• C) Gain of $200
• D) Loss of $900

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Definitions:

Historical Roots

The origin or basis of something, particularly tracing back to its earliest known evidence or conception in history.

Personality Psychology

Personality psychology focuses on understanding how individual differences in behavior, patterns of thinking, and emotions arise, and how these differences contribute to personal identity.

Ancient Greek

A branch of the Indo-European family of languages, spoken by the people of Ancient Greece, significant for its literature, philosophy, and influence on the Western world.

Trait Theorist

A psychologist who studies and categorizes human personalities based on identifiable traits, which are considered relatively stable over time.