Three Months Ago,you Purchased a Put Option on WXX Stock

question 19

Multiple Choice

Three months ago,you purchased a put option on WXX stock with a strike price of $60 and an option price of $.60. The option expires today when the value of WXX stock is $62.50. Ignoring trading costs and taxes,what is your total profit or loss on your investment?

• A) -$310
• B) -$60
• C) $0
• D) $60
• E) $190

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Definitions:

Independent Variable

In research, this is the condition or factor that is intentionally changed to observe its impact on an outcome.

Structuralism

The school of psychology that argues that the mind consists of three basic elements—sensations, feelings, and images—that combine to form experience.

Psychology

The scientific study of the mind and behavior, encompassing both conscious and unconscious phenomena.

Sensations

The physical feelings or perceptions resulting from something that happens to or comes into contact with the body.