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

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Definitions:

Psychoticism

A personality pattern typified by aggressiveness, impulsivity, and a lack of empathy, often associated with the risk of developing psychotic disorders.

Egocentric

A characteristic where an individual is excessively focused on their own needs and viewpoints, disregarding others' perspectives.

Aggressive

Behavior characterized by the intention to harm or assert dominance over another.

Genetic Factors

Biological influences on physical and psychological traits that are inherited from one's parents and ancestors.