Three months ago you bought a put option with an exercise price of $100.What is the value of this option at expiration if the stock price is $110?
A) $10
B) −$110
C) $0
D) −$10

Question

Quizplus · Accepted Answer

A put option gives the holder the right to sell a stock at the exercise price. If the stock price is above the exercise price at expiration, the option is worthless, so its value is $0.

Three Months Ago You Bought a Put Option with an Exercise