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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Definitions:

One-Stop Shop

A business or service that offers a wide array of products or services, allowing customers to fulfill all their needs in one place.

Distribution Network

The interconnected group of storage facilities and transportation systems that move goods from producers to consumers.

High Profitability

A situation where businesses or investments return a significantly higher profit relative to their costs.

Customer Service

The support and assistance provided by a company to those who purchase or use its products or services, aiming to ensure customer satisfaction.