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:

Top Management

The highest level of managerial staff, responsible for the overall direction and strategies of an organization.

Targeted Recruitment

A recruitment strategy that involves focusing efforts on specific demographics or individuals with particular skills or experiences, to fulfill the specific needs of the organization.

Leadership Qualities

The set of characteristics, traits, and skills that are considered desirable in an individual who directs, motivates, and guides others towards achieving common goals.

Trustworthiness

The quality of being reliable, honest, and deserving of trust.