A Put Option Is Purchased and Held for 1 Year

question 2

Multiple Choice

A put option is purchased and held for 1 year.The Exercise price on the underlying asset is $40.If the current price of the asset is $36.45 and the future value of the original option premium is (-$1.62) ,what is the put profit,if any,at the end of the year?

• A) $1.62
• B) $1.93
• C) $3.55
• D) $5.17

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Definitions:

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