Tim Purchased 3 Put Option Contracts on Western Fields Stock

question 73

Multiple Choice

Tim purchased 3 put option contracts on Western Fields stock. The strike price was $35 and the option premium was $0.60. At expiration, the stock was selling for $35.75. What is the payoff on the option contracts?

• A) -$60
• B) -$30
• C) $0
• D) $30
• E) $60

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Definitions:

Population

The total number of people under consideration.

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A subset of individuals from a larger population, selected for participation in a research study, meant to represent the larger group.

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A group of individuals sharing a specific characteristic, typically defined by age, who are studied over a period of time.

Variables

Elements or factors that can change and affect the outcome of scientific experiments or research studies, allowing researchers to determine effects and correlations.