You Wrote Ten Put Option Contracts on JIG Stock with a Strike

question 77

Multiple Choice

You wrote ten put option contracts on JIG stock with a strike price of $40 and an option price of $.40.What is your total profit on this investment if the price of JIG is $41.05 on the option expiration date?

• A)$6,450
• B)$5,650
• C)$400
• D)−$5,650
• E)−$6,450

---

Definitions:

Aldol Condensation

A chemical reaction that combines two aldehyde or ketone molecules to form a larger β-hydroxy aldehyde or β-hydroxy ketone, followed by dehydration to give a conjugated enone.

Base-Mediated Aldol Condensation

A reaction process that involves the use of a base to facilitate condensation between two carbonyl compounds, forming a β-hydroxy carbonyl compound or an α,β-unsaturated carbonyl compound.

Enolate

An anion formed by the deprotonation of an alpha-hydrogen of a carbonyl compound, important in many organic reactions.

Haloform Reaction

A chemical reaction where a haloform is produced by the halogenation of methyl ketones in the presence of base.