Kim Lee purchased 6 put option contracts on Eastern Imports stock at a strike price of $47.50.The option premium was $0.65.At expiration,the stock was valued at $44.90 a share.What is her percentage return?
A) -100 percent
B) 0 percent
C) 5.47 percent
D) 32.82 percent
E) 300 percent

Question

Quizplus · Accepted Answer

Percentage return = ($47.50 - $44.90 - $0.65) / $0.65 = 300 percent

Kim Lee Purchased 6 Put Option Contracts on Eastern Imports