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

---

Definitions:

Anxiety Disorders

A group of mental health disorders characterized by excessive fear, anxiety, and related behavioral disturbances.

Excessive Apprehension

An overly intense worry or fear about future events or outcomes, beyond what may be considered normal or rationale.

Neurotransmitters

Chemicals that carry signals from one neuron to another.

Obsession

A persistent, intrusive, and unwanted thought, idea, or image that causes significant anxiety or distress.