You Wrote Two Put Options on Xylo Stock with an Exercise

question 68

Multiple Choice

You wrote two put options on Xylo stock with an exercise price of $30 per share and an option price of $1.05 per share.Today,the contracts expire and the stock is selling for $31.15 a share.What is your net profit or loss on this investment? Ignore trading costs and taxes.

• A)-$115
• B)-$105
• C)$20
• D)$105
• E)$210

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Definitions:

Narcissism

A behavioral quality marked by an overblown sense of one's significance, an intense requirement for outsized admiration and attention, and a deficient capacity for empathizing with others.

Chain Migration

A process by which immigrants from a particular town follow others from the same town to a new area or country, often facilitated by family and community networks.

Brain's Reward Centers

Areas in the brain, including the limbic system, involved in motivation, pleasure, and reinforcement learning, which are activated by rewarding stimuli.

Narcissistic Behaviors

Actions characterized by an excessive interest in or admiration of oneself and one's physical appearance.