Suppose You Purchased 10 Put Option Contracts at a Strike

question 71

Multiple Choice

Suppose you purchased 10 put option contracts at a strike price of $90 on JCS stock at the quoted price of $0.90. At expiration, the stock price is $93.12. What is your profit on this transaction?

• A) $2,200
• B) - $90
• C) $220
• D) - $900
• E) $0

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Definitions:

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, aiming to assess their relative purchasing power.

GDP Data

Statistical information that reflects the market value of all final goods and services produced within a country in a given period, used to analyze economic health.

Economic Measures

Economic measures are indicators or metrics used to assess the economic performance or health of an entity, such as GDP, unemployment rates, or inflation.

GDP

Gross Domestic Product (GDP) measures the total value of all goods and services produced over a specific time period within a country's borders.