You Own 8 Put Option Contracts on JL Industrial Stock

question 78

Multiple Choice

You own 8 put option contracts on JL Industrial stock. You paid an option premium of $0.80 for a strike price of $42.50. On the option expiration date, the stock was selling for $41.25 a share. What is your percentage return?

• A) -100 percent
• B) -18.75 percent
• C) 11.26 percent
• D) 18.75 percent
• E) 56.25 percent

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Definitions:

Persistent In Beliefs

The quality of firmly adhering to one's own opinions or convictions, even in the face of opposition or evidence to the contrary.

Norm Of Reciprocity

A social standard that expects individuals to respond to each other's actions with similar actions, promoting cooperation and fairness.

Favors Of The Same Size

Acts of kindness or assistance that are comparable in magnitude or extent.

Use Of Pressure

The application of force or influence to persuade or compel someone to act in a certain way.