Gerold Purchased 3 Put Option Contracts at an Option Premium

question 57

Multiple Choice

Gerold purchased 3 put option contracts at an option premium of $0.95 and a strike price of $40.At expiration,the stock price was $42.25 per share.What is his percentage return?

• A) -100 percent
• B) 0 percent
• C) 15.79 percent
• D) 21.62 percent
• E) 31.58 percent

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Definitions:

Isolated Plantations

Large farms or estates, typically in remote locations, where crops are grown, often historically relying on slave or indentured labor.

Larger Towns

Urban areas that are bigger than villages and small towns, usually with a greater range of services and amenities.

Small Adults

Adults who are significantly below average in physical stature or size, which could be due to genetic, nutritional, or health-related factors.

Harshly

In a manner that is severe, cruel, or excessively critical, often resulting in discomfort or resentment.