A Put Option on a Stock Has an Exercise Price

question 19

Multiple Choice

A put option on a stock has an exercise price of $31.If the stock price at expiration is $29.45,what is the option payoff for a long put position?

• A)$29.45
• B)$0
• C)$1.55
• D)-$1.55
• E)-$29.45

---

Definitions:

Knowledgeability

The state of having knowledge or information about a specific topic or field; being well-informed.

Prison Cells

Small rooms in a jail or prison where inmates are housed, typically featuring minimal furnishings and secure locking mechanisms.

Hudson v. Palmer

A United States Supreme Court case that established that prisoners do not have a reasonable expectation of privacy in their prison cells under the Fourth Amendment.

Staff Harassment

Unwelcome or inappropriate behavior directed at employees, typically creating a hostile or intimidating work environment.