You Purchased 500 Shares of SLG,Inc

question 70

Multiple Choice

You purchased 500 shares of SLG,Inc.stock at a price of $43.70 a share.You then purchased put options on your shares with a strike price of $40.00 and an option premium of $0.90.At expiration,the stock was selling for $47.80 a share.You sold your shares on the option expiration date.What is your net profit or loss your transactions related to SLG,Inc.stock?

• A) $1,650
• B) $1,250
• C) $1,600
• D) $2,150
• E) $2,300

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Definitions:

Mean

The average value of a set of numbers, calculated by dividing the sum of all values by the count of values.

Confidence Interval

A span of values calculated from sample statistics, which is likely to embody the value of a hidden population parameter.

Mean

A measure of central tendency which is calculated by adding up all the values in a data set and then dividing by the number of values.