You Sold Ten Put Option Contracts on PLT Stock with an Exercise

question 29

Multiple Choice

You sold ten put option contracts on PLT stock with an exercise price of $32.50 and an option price of $1.10. Today,the option expires and the underlying stock is selling for $34.30 a share. Ignoring trading costs and taxes,what is your total profit or loss on this investment?

• A) -$2,900
• B) -$1,100
• C) $700
• D) $1,100
• E) $2,900

Grasp the concepts of management philosophy and its impact on organizational culture.

Understand how shared meanings and values contribute to organizational culture.

Recognize the role of top managers and leadership in setting the tone for cultural development and change.

Identify strategies for developing a strong organizational culture.

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Definitions:

Sales Trend

The examination of sales data over a period of time to identify patterns or trends, which can help in making business forecasts.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Accounts Receivable

Accounts receivable refers to the funds that a company's customers owe it for products or services that have already been provided but for which payment has not yet been received.

Bad Debt Expense

The estimated amount of accounts receivable that will not be collected, recognized as an expense.