Ahmad bought put options on Verizon with a striking price of $32. The option premium was $2.50. Just before the contract expired, Verizon stock 30.50 per share. Ahmad: a. lost 1.50 per share b. lost 0.50 per share c. lost 2.50 per share because the option would not be exercised d. made a profit of 1.50 per share

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Your Question:

Ahmad bought put options on Verizon with a striking price of $32. The option premium was $2.50. Just before the contract expired, Verizon stock 30.50 per share. Ahmad:

a. lost 1.50 per share

b. lost 0.50 per share

c. lost 2.50 per share because the option would not be exercised

d. made a profit of 1.50 per share

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