A Stock Currently Trades at $110

question 13

Multiple Choice

A stock currently trades at $110. June put options on the stock with a strike price of $100 are priced at $5.25. Calculate the dollar return on one put contract.

• A) -$525
• B) $1000
• C) $0
• D) -$1000
• E) $525

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Definitions:

Learned Habits

Learned habits are behaviors or routines that are acquired through repetition and practice.

Behavioral Perspective

An approach in psychology focusing on observable behaviors, emphasizing the role of learning and the environment in shaping behavior.

Cognitive Psychology

A branch of psychology focusing on the study of mental processes, including perception, thought, memory, and reasoning.

Mental Processes

Internal cognitive actions that underlie an individual's thought, emotion, and behavior, such as perception, memory, and decision-making.