You Sold a Put Contract on EDF Stock at an Option

question 52

Multiple Choice

You sold a put contract on EDF stock at an option price of $.40. The option had an exercise price of $20. The option was exercised. Today,EDF stock is selling for $19 a share. What is your total profit or loss on all of your transactions related to EDF stock assuming that you close out your positions in this stock today? Ignore transaction costs and taxes.

• A) -$140
• B) -$60
• C) $40
• D) $60
• E) $140