At Expiry, a Holder of a Put Option (With an Exercise

question 23

Multiple Choice

At expiry, a holder of a put option (with an exercise price of $5.50 purchased for a premium of $0.45) over Foster's Group Ltd shares (now trading at $5.69) will:

• A)exercise with a profit of $0.16 per share
• B)exercise but make a loss of $0.29 per share
• C)exercise but make a loss of $0.61 per share
• D)not exercise with a loss of $0.45 per share.
• E)None of these.

---

Definitions:

Unity Within Diversity

The concept that highlights cohesiveness and harmony among various groups in society, despite differences in background, culture, or beliefs.

Calorie Control Council

An organization dedicated to providing information and research related to calorie consumption and its impact on health.

Binge Eating Episode

A period marked by excessive consumption of food in a short time frame, often without control and followed by feelings of shame or guilt.

Purging Behavior

Actions undertaken to rid the body of consumed food or substances, often associated with eating disorders such as bulimia nervosa.