Suppose you purchased 10 put option contracts at a strike price of $90 on JCS stock at the quoted price of $0.90. At expiration, the stock price is $93.12. What is your profit on this transaction?
A) $2,200
B) - $90
C) $220
D) - $900
E) $0

Question

Quizplus · Accepted Answer

Since the stock price at expiration is above the strike price, the put option is out of the money and has no intrinsic value. Therefore, the profit is simply the premium received from selling the put option: 
10 contracts x 100 shares per contract x $0.90 premium = $900 profit.

Suppose You Purchased 10 Put Option Contracts at a Strike