The Price of a Stock Is $67

question 7

Multiple Choice

The price of a stock is $67.A trader sells 5 put option contracts on the stock with a strike price of $70 when the option price is $4.The options are exercised when the stock price is $69.What is the trader's net profit or loss?

• A) Loss of $1,500
• B) Loss of $500
• C) Gain of $1,500
• D) Loss of $1,000

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Definitions:

Receiver Response

The reaction or feedback of the audience after receiving a message or communication.

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Translated or interpreted from a complex or encrypted form into a simpler, understandable format.

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The delivery of a message in a clear, understandable manner that is received and comprehended by the intended audience.

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