You Purchased a Put with a Strike Price of $37

question 4

Multiple Choice

You purchased a put with a strike price of $37.5 and an option premium of $0.45.You simultaneously bought the stock at a price of $36 a share.What is your profit per share on these transactions if the stock price at expiration is $33.50?

• A) -$1.15
• B) -$0.15
• C) $0.15
• D) $0.75
• E) $1.05

---

Definitions:

Alternative Hypothesis

The hypothesis that proposes there is a significant difference between two variables or that a parameter of the population has a value that contradicts the null hypothesis.

Simple Linear Regression

A statistical method for modeling the relationship between a dependent variable and one independent variable.

F Statistic

A ratio of variances that is used primarily in ANOVA to assess whether the variances between groups are significantly different.

Alternative Hypothesis

The hypothesis that proposes a significant difference, relationship, or effect, and is accepted if the null hypothesis is rejected.