What is the value of one November 35 put contract?

A) $70
B) $460
C) $510
D) $4,600
E) $5,100

Question

What is the value of one November 35 put contract?

A) $70 
B) $460 
C) $510 
D) $4,600 
E) $5,100

Quizplus · Accepted Answer

The value of a put contract is the maximum amount you can gain from exercising the option, which is equal to the strike price minus the price of the underlying asset. In this case, the strike price is $35 and the price of the underlying asset is not given, so we cannot calculate the exact value of the put contract. However, we can eliminate choices A, B, and D because they are too low or too high to be a reasonable value for a put option. Choice E is also too high because it would imply a strike price that is much higher than the current price of any stock or index. Therefore, the best choice is C, which falls within a reasonable range for the value of a put option.

What Is the Value of One November 35 Put Contract