You Purchase 5 Put Option Contracts at a Price of $1.20

question 82

Multiple Choice

You purchase 5 put option contracts at a price of $1.20. The strike price of the option is $52.50, and the stock price at expiration is $46.80. What is the percentage return on your investment?

• A) 2.50%
• B) 3.75%
• C) 4.75%
• D) 375.00%
• E) 475.00%

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Definitions:

Constructionist

An approach in various fields that emphasizes the role of construction or assembling in understanding phenomena, often used in contexts like social constructionism.

Similarity-based Models

Theoretical frameworks in psychology or artificial intelligence that assume decisions or categorizations are made based on the resemblance to known categories.

Categories

Classification of items or concepts into groups based on shared characteristics or attributes.

Exemplar Theory

A psychological theory suggesting that people categorize objects and concepts based on the comparison to typical instances or examples stored in memory.