The Price of a Stock Is $67

question 7

Multiple Choice

The price of a stock is $67.A trader sells 5 put option contracts on the stock with a strike price of $70 when the option price is $4.The options are exercised when the stock price is $69.What is the trader's net profit or loss?

• A) Loss of $1,500
• B) Loss of $500
• C) Gain of $1,500
• D) Loss of $1,000

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Definitions:

Work Flow Design

A method for optimizing the sequence of tasks and activities to enhance efficiency and effectiveness in business processes.

Aggregate

A total or sum made up from individual parts, often used in the context of statistical analysis, data collection, or information synthesis.

Duties

Responsibilities or tasks one is required to perform as part of a job or role.

Decision-making Authority

The power or right conferred upon individuals or groups to make important decisions within an organization.