You purchased eight put option contracts with a strike price of $30 and a premium of $1.10.What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $26.50 a share?
A) $23,120
B) $24,700
C) $25,740
D) $26,340
E) $26,400

Question

Quizplus · Accepted Answer

Total net amount = 800 × ($30 - $1.10) = $12,120

You Purchased Eight Put Option Contracts with a Strike Price