You Write a Put with a Strike Price of $90

question 84

Multiple Choice

You write a put with a strike price of $90 on a stock you have shorted at $90. If the stock price at expiration is $93.12, what is your profit per share if the put premium was $4.15?

• A) $4.15
• B) $7.17
• C) $3.12
• D) -$2.09
• E) $1.03

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Definitions:

Seventh-Grade

Typically refers to the second year of middle school in many education systems, where students are usually around 12 to 13 years old.

Operant Conditioning

An approach to learning in which the force of a behavior is shaped through positive reinforcement or negative consequences.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of no exposure to the conditioned stimulus.

Respondent Behavior

Behavior that occurs as a direct response to a specific stimulus, often reflexive or involuntary in nature.