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:

Repetitive

Involving or characterized by repetition, often to the point of being monotonous or predictable.

Disaster

A sudden event, such as a natural catastrophe or human-made crisis, that causes great damage or loss of life.

Obsessive-compulsive Disorder

A mental disorder characterized by repetitive, unwanted thoughts (obsessions) and irrational, excessive urges to do certain actions (compulsions).

Ritual

A set of fixed actions and sometimes words performed regularly, especially as part of a ceremony or for religious purposes.