Jennifer Purchased 3 Put Option Contracts on Winslow Mfg

question 20

Multiple Choice

Jennifer purchased 3 put option contracts on Winslow Mfg.stock.The option premium was $0.75 and the strike price was $27.50.On the expiration date,the stock was selling for $27.75 a share.What is the total payoff on the option contracts?

• A) -$100
• B) -$50
• C) $0
• D) $50
• E) $150

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