Ahmad Bought Put Options on Home Depot with a Strike

question 132

Multiple Choice

Ahmad bought put options on Home Depot with a strike price of $130.The option premium was $2.83.Just before the contract expired, Home Depot stock was at $132.83 per share.Ahmad

• A)made a profit of $2.83 per share.
• B)lost $2.83 per share because the option would not be exercised.
• C)lost $1.66 per share.
• D)made a profit of $1.66 per share.

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