If an Investor Buys a Dupont Put for $2

question 41

Multiple Choice

If an investor buys a Dupont put for $2.50 maturing in three months with a strike price of $50, what is the rate of return if Dupont is currently trading at $51.75 but falls to $46 at expiration?

• A) 30%
• B) 40%
• C) 50%
• D) 60%

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Definitions:

Stigma Consciousness

The expectation of being perceived by other people, particularly those in the majority group, in terms of one’s group membership.

Stereotype Threat

The concern that one might do something to confirm a negative stereotype about one’s group either in one’s own eyes or the eyes of someone else.

Disidentification

The process of disinvesting in any area in which one’s group traditionally has been underrepresented or negatively stereotyped.

Self-objectification

The tendency to view oneself primarily as an object to be looked at and evaluated based on appearance, rather than as a fully rounded individual.