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:

Q

Generally denotes quantity in economic and mathematical models, referring to the amount of goods or services.

School of Thought

A particular philosophy or a specific way of thinking that is characteristic of a certain group or period.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Velocity of Money

The rate at which money circulates in the economy, typically measured as the ratio of GDP to the national money supply.