You Sold a Put Contract on EDF Stock at an Option

question 52

Multiple Choice

You sold a put contract on EDF stock at an option price of $.40. The option had an exercise price of $20. The option was exercised. Today,EDF stock is selling for $19 a share. What is your total profit or loss on all of your transactions related to EDF stock assuming that you close out your positions in this stock today? Ignore transaction costs and taxes.

• A) -$140
• B) -$60
• C) $40
• D) $60
• E) $140

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Definitions:

Goodwill

An intangible asset that represents the value of a company's brand name, customer relationships, employee morale, and other factors that improve a company's business prospects.

Service to Customers

The act of providing support and assistance to buyers before, during, and after a purchase to ensure a satisfactory experience.

Salesperson's Success

The achievement of sales goals and objectives by a sales professional, often measured by sales volume, profitability, and customer satisfaction.

Salespeople Work

Refers to the activities and efforts of individuals who sell products or services directly to consumers or businesses, aiming to meet sales targets and customer needs.