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A Put Option on a Stock Has an Exercise Price

Question 56

Multiple Choice

A put option on a stock has an exercise price of $31.If the stock price at expiration is $33.40,what is the option payoff for a short put position?


A) $33.40
B) -$2.40
C) $2.40
D) $0
E) -$33.40

Correct Answer:

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