You own 6 put option contracts on JL Industrial stock.You paid an option premium of $0.75 for a strike price of $42.50.On the option expiration date,the stock was selling for $41.00 a share.What is your percentage return?
A)-100 percent
B)-18.75 percent
C)51.26 percent
D)78.75 percent
E)100 percent

Question

Quizplus · Accepted Answer

Percentage return = ($42.50 - $41.00 - $0.75)/$0.75 = 100 percent

You Own 6 Put Option Contracts on JL Industrial Stock