You Purchased Six Put Option Contracts with a Strike Price

question 74

Multiple Choice

You purchased six put option contracts with a strike price of $30 and a premium of $0.90.At expiration,the stock was selling for $26.80 a share.What is the total net amount you received for your shares,assuming that you disposed of your shares on the expiration date?

• A) $17,955
• B) $17,460
• C) $17,045
• D) $17,815
• E) $17,160

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Definitions:

Social Compensation

Increased effort on a collective task to compensate for other group members’ actual, perceived or anticipated lack of effort or ability.

Free-Rider Effect

A phenomenon where individuals benefit from resources or goods without contributing to the cost or effort involved in their production or provision.

Ethnomethodology

Method devised by Garfinkel, involving the violation of hidden norms to reveal their presence.

Personal Attraction

Liking for someone based on idiosyncratic preferences and interpersonal relationships.