Gwen Wrote a Put Option with a $15 Strike Price

question 3

Multiple Choice

Gwen wrote a put option with a $15 strike price on RDX stock when the stock price was $16 per share. The option premium was $3. What is the maximum loss (per share) that Gwen could experience on her option position?

• A) $3
• B) $12
• C) $14
• D) $15

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Definitions:

Flashbulb Memory

A highly detailed and vivid memory of an emotionally significant moment or event, which is believed to be recalled with high accuracy.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences, including their contexts and associated emotions.

Autobiographical Memory

Refers to a person's memory of specific episodes or events from their own life, often containing emotional and contextual details.

Ebbinghaus

Refers to Hermann Ebbinghaus, a psychologist who pioneered the experimental study of memory and discovered the forgetting curve and the spacing effect.