You Purchased Six Put Option Contracts with a Strike Price

question 34

Multiple Choice

You purchased six put option contracts with a strike price of $45 and a premium of $1.10. What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $42.90 a share?

• A)$23,660
• B)$24,700
• C)$25,740
• D)$26,340
• E)$26,400

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Definitions:

Sex Appeal

The use of sexually arousing or suggestive imagery and themes in advertising to draw attention and influence consumer behavior.

Recall

The ability to retrieve information or memories from one's past experiences, or a company's process of retrieving defective or potentially unsafe products from consumers.

Refutational Argument

A technique in persuasive communication where opposing viewpoints are presented and then countered with evidence.

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A cleaning agent used for washing dishes, typically in powder form.