Ahmad Bought Put Options on Wesfarmers with a Striking Price

question 126

Multiple Choice

Ahmad bought put options on Wesfarmers with a striking price of $50.The option premium was $2.64.Just before the contract expired,Wesfarmers shares were at 51.39 each.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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Definitions:

Permanent Magnets

Magnets that do not require an external force to maintain their magnetic properties.

Field

In the context of electromagnetism, it refers to the region around a charged particle or object within which a force would be exerted on other charges or magnetic materials.

Man-Made

Something made or constructed by human beings rather than occurring naturally in the environment.

Permanent Magnets

Materials that maintain a persistent magnetic field without the need for continuous energy input.