You Own 6 Put Option Contracts on JL Industrial Stock

question 35

Multiple Choice

You own 6 put option contracts on JL Industrial stock.You paid an option premium of $0.85 for a strike price of $37.50.On the option expiration date,the stock was selling for $35.00 a share.What is your percentage return?

• A) -100 percent
• B) -18.75 percent
• C) 71.26 percent
• D) 194.00 percent
• E) 200.20 percent

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Definitions:

Paycheck

A regular payment made by an employer to an employee, usually on a monthly or biweekly basis.

Variable Schedule

A variable schedule in the context of reinforcement refers to a procedure in which rewards are given at unpredictable intervals, influencing behavior.

Extinction

In psychology, the gradual weakening of a conditioned response when the conditioned stimulus is presented without the unconditioned stimulus.

Conditioned Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer.