You Sold Ten Put Option Contracts on PLT Stock with an Exercise

question 88

Multiple Choice

You sold ten put option contracts on PLT stock with an exercise price of $31.20 and an option price of $1.20. Today,the option expires and the underlying stock is selling for $33 a share. Ignoring trading costs and taxes,what is your total profit or loss on this investment?

• A) -$3,300
• B) -$1,200
• C) $120
• D) $1,200
• E) $3,300

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Definitions:

Autoreceptors

Specialized receptor molecules located on a neuron that respond to the neurotransmitter released by that neuron, regulating its own function.

Presynaptic Side

The part of a synapse that releases neurotransmitters from the axon terminal of a neuron into the synaptic cleft, initiating a neural signal.

Neurotransmitters

Chemical messengers released by neurons that transmit signals across a chemical synapse, such as between neurons or from neurons to muscles.

Axoaxonic Synapses

A specific type of synaptic connection where the axon of one neuron connects to the axon of another, impacting the release of neurotransmitters.