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You purchased 500 shares of SLG, Inc. stock at a price of $40.20 a share. You then purchased put options on your shares with a strike price of $47.50 and an option premium of $1.90. At expiration, the stock was selling for $48.30 a share. You sold your shares on the option expiration date. What is your net profit or loss your transactions related to SLG, Inc. stock?
Gains From Trade
Gains from trade are the benefits obtained by countries or individuals from engaging in international trade, allowing them to consume or produce beyond their domestic capabilities.
Factor Market
A marketplace where factors of production (land, labor, capital, entrepreneurship) are bought and sold, affecting the prices and allocation of these resources.
Resource
Anything, such as land, labor, and capital, that can be used to produce something else; includes natural resources (from the physical environment) and human resources (labor, skill, intelligence).
Circular-Flow Diagram
A visual model that depicts how goods, services, and money move through an economy, illustrating the interactions between households and firms.
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