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

---

Definitions:

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, also playing a role in regulating mood, appetite, and sleep.

Lithium

A chemical element often used in the treatment of bipolar disorder and other mental health conditions to stabilize mood.

Bipolar Disorder

A mental disorder characterized by periods of depression and periods of elevated mood or mania, leading to significant changes in behavior and energy levels.

Mood-stabilizing Drug

Medications used primarily to treat mood disorders and prevent swings between mania and depression.