You Purchased Seven Put Option Contracts with a Strike Price

question 17

Multiple Choice

You purchased seven put option contracts with a strike price of $25 and a premium of $0.85. At expiration, the stock was selling for $24.80 a share. What is the total net amount you received for your shares, assuming that you disposed of your shares on the expiration date?

• A) $17,955
• B) $16,905
• C) $17,045
• D) $17,815
• E) $17,160

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Definitions:

The Fovea

A tiny pit located in the macula of the retina that provides the clearest vision of all; it's responsible for sharp central vision.

The Retina

A layer at the back of the eye that contains cells sensitive to light and triggers nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Optic Nerve

The structure at the back of the eye, made up of axons of the ganglion cells, that carries visual information to the brain for further processing.

Blind Spot

An area in the visual field that lacks light-detecting photoreceptor cells on the optic disc of the retina, making it insensitive to light.