The Price of a Stock on February 1 Is $48

question 7

Multiple Choice

The price of a stock on February 1 is $48.A trader sells 200 put options on the stock with a strike price of $40 when the option price is $2.The options are exercised when the stock price is $39.The trader's net profit or loss is

• A) Loss of $800
• B) Loss of $200
• C) Gain of $200
• D) Loss of $900

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Definitions:

Stomata

Small openings or pores, typically found on the underside of leaves, allowing for gas exchange between the plant and its external environment.

Macronutrient

Essential nutrients required in large amounts by living organisms, including carbohydrates, proteins, and fats, which provide energy and structural materials.

Nucleic Acids

Large biomolecules essential for all known forms of life, including DNA and RNA, which carry genetic information.

Phospholipids

A class of lipids that are a major component of all cell membranes, consisting of two fatty acids, a glycerol unit, and a phosphate group.