Gerold Purchased 2 Put Option Contracts at an Option Premium

question 72

Multiple Choice

Gerold purchased 2 put option contracts at an option premium of $0.95 and a strike price of $40. At expiration, the stock price was $41.25 per share. What is his percentage return?

• A) -100 percent
• B) 0 percent
• C) 15.79 percent
• D) 21.62 percent
• E) 31.58 percent

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Definitions:

Corporate Mission

A statement that outlines an organization's purpose, goals, and approach to reach those goals, guiding its strategic planning and corporate culture.

Discriminatory Event

An occurrence where an individual or group is treated unfairly based on characteristics such as race, gender, age, or disability.

EEOC

The Equal Employment Opportunity Commission, a federal agency that administers and enforces civil rights laws against workplace discrimination.

Seek Revenge

The act of attempting to retaliate or inflict harm on someone in response to a grievance or harm suffered at their hands.