You Wrote Six Put Option Contracts on Bakers Field Stock

Multiple Choice

You wrote six put option contracts on Bakers Field stock with an exercise price of $30 and an option price of $2.20.The stock price was $31.20 a share on the option expiration date.Ignoring trading costs and taxes,what is your total net profit or loss on this investment?

A) −$1,320
B) $2,040
C) $1,320
D) $1,180
E) −$1,180