You Sold Five Put Option Contracts on Bakers Field Stock

question 43

Multiple Choice

You sold five put option contracts on Bakers Field stock with an exercise price of $27.50 and an option price of $1.06.The stock price was $28.20 a share on the option expiration date.Ignoring trading costs and taxes,what is your total net profit or loss on this investment?

• A)-$530
• B)-$180
• C)$530
• D)$180
• E)$880

---

Definitions:

Premium Tickets

Higher-priced tickets that offer additional benefits or superior seating and viewing experiences at events.

Three-Eighths Interest

Refers to a specific interest rate of 3/8, or 0.375, often used in financial agreements or calculations.

Ski Chalet

A type of mountain lodge or cabin, often located in ski resorts, designed primarily for accommodation and leisure activities related to skiing.

Billing

The process of sending or presenting invoices to customers for goods or services provided.