Gerold purchased 3 put option contracts at an option premium of $0.95 and a strike price of $40.At expiration,the stock price was $42.25 per share.What is his percentage return?
A) -100 percent
B) 0 percent
C) 15.79 percent
D) 21.62 percent
E) 31.58 percent

Question

Quizplus · Accepted Answer

Percentage return = -$0.95 / $0.95 = -100 percent
The put is worthless since the stock price exceeds the strike price.

Gerold Purchased 3 Put Option Contracts at an Option Premium