Kim Lee Purchased 6 Put Option Contracts on Eastern Imports

question 94

Multiple Choice

Kim Lee purchased 6 put option contracts on Eastern Imports stock at a strike price of $47.50.The option premium was $0.65.At expiration,the stock was valued at $44.90 a share.What is her percentage return?

• A) -100 percent
• B) 0 percent
• C) 5.47 percent
• D) 32.82 percent
• E) 300 percent

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Definitions:

Perfect

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Creditor

is a person, bank, or entity that lends money or extends credit to another party, thus holding a claim against the borrower for the return of the asset or its value.

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1998 Revisions

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