You Sold a $30 Put Contract on EDF Stock at an Option

question 12

Multiple Choice

You sold a $30 put contract on EDF stock at an option price of $1.30.The option was exercised when the stock price was $26.10 a share.What is your total net profit or loss?

• A)-$140
• B)-$260
• C)$130
• D)$260
• E)$520

---

Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness and interdependence among nations.

Income Inequality

The unequal distribution of income among individuals or households within a society or economy.

China

A country in East Asia, known for being the world's most populous nation and having a rich history, diverse culture, and significant economic influence globally.

Sub-Saharan Africa

The region of Africa located south of the Sahara Desert, characterized by diverse cultures, languages, and histories.