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:

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The termination of all biological functions that sustain a living organism, marking the end of life.

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The spiritual or immaterial part of a human being or animal, often regarded as immortal.

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Belief that all things possess a spirit.

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