You Write 5 Put Option Contracts with a Premium of $4.85

question 77

Multiple Choice

You write 5 put option contracts with a premium of $4.85 and a strike price of $80. What is your profit if the stock price at expiration is $78.13?

• A) $1,490
• B) $935
• C) $3,860
• D) -$935
• E) -$1,620

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Definitions:

Steady Light Rain

A continuous and uniform precipitation with relatively low intensity, typically not leading to significant flooding.

River's Flow

The movement of water in a river channel as it travels from the headwaters to the mouth, influenced by gravity and landscape.

Gravity

The force that attracts a body towards the center of the earth, or towards any other physical body having mass, playing a key role in the movement and deformation of the Earth's crust.

Sediment Load

The amount of sediment, including material chemically dissolved in a solution, carried by a stream.