You Purchased Four Put Option Contracts with a Strike Price

question 40

Multiple Choice

You purchased four put option contracts with a strike price of $35 and a premium of $0.80.What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $31.50 a share?

• A) $13,680
• B) $14,700
• C) $15,740
• D) $16,340
• E) $16,400

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Definitions:

Followership

Individuals’ capacity to cooperate with leaders.

Cooperate

To work or act together towards a common goal or benefit, often requiring compromise or teamwork.

Leaders

Individuals who influence and guide others within an organization or team towards achieving specific goals or visions.

Natural Reward

An intrinsic reward that comes from the activity itself rather than from external factors, providing personal satisfaction and motivation.