Suppose You Purchase a Put Option on Asset XYZ That

question 29

Multiple Choice

Suppose you purchase a put option on Asset XYZ that has an exercise price of $40. The option price is $2 per share. Suppose that on the expiration date, the current price is $39. What is your net profit or loss?

• A) -$3.00
• B) -$1.00
• C) $0.00
• D) $1.00

---

Definitions:

Supply Chain Logistics

Overseeing the movement and storage of goods, services, raw materials, in-progress inventory, and final products from where they originate to where they are consumed.

Production Management

Production Management involves planning, coordination, and control of industrial processes to ensure that goods are produced efficiently, effectively, and at the right quality.

Value Proposition

A statement or promise that outlines how a product or service will add value, solve problems, or improve the situation for customers.

Capturing Value

The process by which companies retain a portion of the value provided to customers through pricing, service, or product features.