A Speculator Purchased a Put Option with an Exercise Price

question 76

Multiple Choice

A speculator purchased a put option with an exercise price of $56 for a premium of $10. The option was exercised a few days later when the stock price was $44. What was the return to the speculator?

• A)-20 percent
• B)120 percent
• C)-100 percent
• D)20 percent

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Definitions:

Evidence-based Practice

A decision-making process that integrates the best available research, clinical expertise, and patient preferences.

Theoretical Approach

A method based on theories and principles to understand, analyze, or address an issue or concept.

Adlerian Therapy

A psychological therapy based on the theories of Alfred Adler, focusing on creating a sense of belonging and significance within communal and social contexts.

WDEP Model

A cognitive-behavioral approach in therapy focusing on Wants, Doing (current behaviors), Evaluation, and Planning for change.