You Own 5 Put Option Contracts on JL Industrial Stock

question 63

Multiple Choice

You own 5 put option contracts on JL Industrial stock.You paid an option premium of $1.15 for a strike price of $27.50.On the option expiration date,the stock was selling for $24.00 a share.What is your percentage return?

• A) -100 percent
• B) -18.75 percent
• C) 71.26 percent
• D) 194.00 percent
• E) 204.00 percent

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Definitions:

Hypertonic

Referring to a solution that has a higher concentration of solutes than another solution, leading to osmosis.

Metabolic Alkalosis

A condition characterized by an increase in the body's pH level due to an excess of bicarbonate in the blood.

Arterial Blood

Blood that is oxygen-rich, having been oxygenated in the lungs and pumped by the heart through the arteries to the body.

Vomiting

The forceful expulsion of stomach contents through the mouth.