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.

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Definitions:

Japan

An island country located in East Asia, known for its rich culture, technological advancements, and historical significance.