Ahmad Bought Put Options on Verizon with a Striking Price

question 31

Multiple Choice

Ahmad bought put options on Verizon with a striking price of $32.The option premium was $2.50.Just before the contract expired,Verizon stock 30.50 per share.Ahmad:

• A)made a profit of $1.50 per share.
• B)lost $2.50 per share because the option would not be exercised.
• C)lost $0.50 per share.
• D)lost $1.50 per share.

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