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

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Definitions:

Historical Events

Significant occurrences in the past that have shaped societies, cultures, or the course of human history.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role and power of situational influences.

Confession

The act of admitting to something, particularly acknowledging one's sins or wrongdoings, often within a religious or legal context.

Duress

A compulsion by threat or force; a condition in which a person acts as a result of pressure or coercion.