Kim Lee Purchased 6 Put Option Contracts on Eastern Imports

question 94

Multiple Choice

Kim Lee purchased 6 put option contracts on Eastern Imports stock at a strike price of $47.50.The option premium was $0.65.At expiration,the stock was valued at $44.90 a share.What is her percentage return?

• A) -100 percent
• B) 0 percent
• C) 5.47 percent
• D) 32.82 percent
• E) 300 percent

---

Definitions:

Jointly And Severally

A legal term referring to a situation where two or more parties are held both together and individually responsible for an obligation.

Obligations

Duties or commitments imposed by law, contract, or moral responsibility.

Majority Of States

Refers to more than half of the 50 states in the United States.

Duty Of Care

A legal obligation to ensure the safety or well-being of others, which can arise in various contexts such as professional services or public activities.