Gerold Purchased 3 Put Option Contracts at an Option Premium

question 57

Multiple Choice

Gerold purchased 3 put option contracts at an option premium of $0.95 and a strike price of $40.At expiration,the stock price was $42.25 per share.What is his percentage return?

• A) -100 percent
• B) 0 percent
• C) 15.79 percent
• D) 21.62 percent
• E) 31.58 percent

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Definitions:

Communicator's Ability

Refers to the skills and competence a person has in effectively conveying information, ideas, and emotions to others through speech, writing, or non-verbal cues.

Chain of Command

The chain of command is a system of authority and responsibility in an organization, where orders are passed from the top levels down to the subordinate levels.

Providing Control

The act of offering or managing the ability to direct or influence others or the outcome of events.

Communication Purpose

The reason or intent behind conveying a message or information to someone else.