You Purchased Four Put Option Contracts with a Strike Price

Multiple Choice

You purchased four put option contracts with a strike price of $34.5 and a premium of $.85. What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $31.50 a share?

A) $13,460
B) $13,700
C) $15,740
D) $16,340
E) $16,400