Suppose You Have a Put Option That Allows You to Sell

question 169

Multiple Choice

Suppose you have a put option that allows you to sell 100 shares of Alcan for $54.50 per share any time before October 2013.If the stock price falls to $45.00 per share,your profit is

• A) $9.50
• B) $54.50
• C) $950.00
• D) $45.00
• E) $0.00

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Definitions:

Protein

Essential molecules for the structure, function, and regulation of the body's tissues and organs.

Contracture

The permanent tightening of muscles, tendons, skin, and other tissues, leading to a decrease in flexibility and mobility.

Tract

In anatomy, a system of related organs or tissues through which materials pass, such as the digestive tract.

To Draw

Means to produce a picture or diagram by making lines and marks on a surface, typically with a pen, pencil, or crayon.