Suppose an Investor Buys a Put for $2

question 63

Multiple Choice

Suppose an investor buys a put for $2.50 a share which matures in 3 months with a strike price of $50. What is the rate of return if the stock price falls to $46 on the expiration date?

• A) 40%
• B) 50%
• C) 55%
• D) 60%

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A territorial division within a state or country, functioning as an administrative or political unit.

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A term used to describe a general jurisdiction trial court in some U.S. states.

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The authority of a court to hear and adjudicate cases of a particular type or cases relating to a specific subject matter.