You Sold Eight Put Option Contracts on PLT Stock with an Exercise

question 75

Multiple Choice

You sold eight put option contracts on PLT stock with an exercise price of $32.50 and an option price of $1.10.Today,the option expires and the underlying stock is selling for $34.30 a share.Ignoring trading costs and taxes,what is your total profit or loss on this investment?

• A)-$2,900
• B)-$880
• C)$880
• D)$1,100
• E)$2,900

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