Ahmad Bought Put Options on Verizon with a Striking Price

question 22

Multiple Choice

Ahmad bought put options on Verizon with a striking price of $50.The option premium was $2.64.Just before the contract expired,Verizon stock was at 51.39 per share.Ahmad

• A)made a profit of $1.39 per share.
• B)lost $2.64 per share because the option would not be exercised.
• C)lost $1.39 per share.
• D)lost $1.20 per share.

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