A Put Option on a Stock Has an Exercise Price

question 56

Multiple Choice

A put option on a stock has an exercise price of $31.If the stock price at expiration is $33.40,what is the option payoff for a short put position?

• A)$33.40
• B)-$2.40
• C)$2.40
• D)$0
• E)-$33.40

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Definitions:

Structural Functionalism

An outlook within sociology that portrays society as an intricate network of components functioning collectively to foster cohesion and steadiness.

Critique

A detailed analysis and assessment of something for the purpose of understanding its nature, determining its limitations, and suggesting possible improvements.

Erving Goffman

A sociologist known for his work on symbolic interactionism and the study of social interactions, especially in everyday situations.

Symbolic Interactionism

A sociological theory that focuses on the interactions among individuals based on mutually understood symbols, emphasizing the subjective meanings of human acts.