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    Fundamentals of Corporate Finance Study Set 12
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    Exam 13: Risk and the Pricing of Options
  5. Question
    A Put Option on a Stock Has an Exercise Price
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A Put Option on a Stock Has an Exercise Price

Question 22

Question 22

Multiple Choice

A put option on a stock has an exercise price of $42.If the stock price at expiration is $35,what is the option payoff for a short put position?


A) $0
B) $7
C) -$7
D) $35
E) -$35

Correct Answer:

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