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You Wrote Two Put Options on Xylo Stock with an Exercise

question 68

Multiple Choice

You wrote two put options on Xylo stock with an exercise price of $30 per share and an option price of $1.05 per share.Today,the contracts expire and the stock is selling for $31.15 a share.What is your net profit or loss on this investment? Ignore trading costs and taxes.

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Definitions:

Quantity Demanded

The specific amount of a good or service that consumers are willing to buy at a given price, holding other factors constant.

United States

A country located in North America, consisting of 50 states and a federal district, known for its significant influence on world economics, politics, and culture.

Excess Demand

A market condition in which the quantity demanded of a product exceeds the quantity supplied at a given price.

Nonprice Ration

Distributing or allocating goods based on criteria other than price, such as need or merit.

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