You Purchased 7 Put Option Contracts on Alto Industries

question 67

Multiple Choice

You purchased 7 put option contracts on Alto Industries. The strike price was $42.50 and the option premium was $1.30. On the expiration date, the stock was valued at $41.40 a share. What is the payoff on the option contracts?

• A)−$140
• B)$0
• C)$110
• D)$360
• E)$770

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