You own 6 put option contracts on JL Industrial stock.You paid an option premium of $0.85 for a strike price of $37.50.On the option expiration date,the stock was selling for $35.00 a share.What is your percentage return?
A) -100 percent
B) -18.75 percent
C) 71.26 percent
D) 194.00 percent
E) 200.20 percent

Question

Quizplus · Accepted Answer

Percentage return = ($37.50 - $35.00 - $0.85) / $0.85 = 194 percent

You Own 6 Put Option Contracts on JL Industrial Stock