On the Expiration Date for a Put Option with Strike

question 20

Multiple Choice

On the expiration date for a put option with strike price of $10.00,premium $1.50 and the current spot price of $14.00,the holder will:

• A) buy the shares in the market place.
• B) let the option contract lapse.
• C) exercise the option.
• D) make a profit of $1.50

---

Definitions:

Committee Meetings

Gatherings of a group of people designated to deliberate on specific subjects or tasks.

Initiating Structure

Leadership behavior characterized by clearly defining roles, setting goals, and establishing well-defined patterns of organization and communication.

Leadership Behavior

The actions, decisions, and mannerisms exhibited by a leader, influencing how they guide, motivate, and manage teams.

Autocratic Leader

A person in charge who retains most of the authority.