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:

Concessions

Are compromises or allowances made by one side in a negotiation or dispute, often involving some degree of surrender of objectives or claims.

Large States

Large states refer to states with significant geographic area, population, or influence within a country, often having greater representation or power in legislative processes.

Alliances

Formal agreements between two or more nations or parties to cooperate on mutual interests or to defend each other in the event of conflict.

Shays's Rebellion

An armed uprising in Western Massachusetts in 1786-1787, led by Daniel Shays, highlighting the need for a stronger national government which led to the drafting of the U.S. Constitution.