Suppose You Have a Put Option That Allows You to Sell

question 263

Multiple Choice

Suppose you have a put option that allows you to sell 100 shares of Alcan for $54.50 per share any time before October 2014. If the stock price falls to $45.00 per share, your profit is

• A) $9.50.
• B) $54.50.
• C) $950.00.
• D) $45.00.
• E) $0.00.

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