b) The put option of Lamborghini share has a striking price of RM55 and a cost of option RM5 per share with three months expiration date. Currently, the selling price for the shares is RM25. Let’s assume that Mr. Mama bought 300 units of shares using the put option, find the profits and losses at the expiration date if he exercises at RM 55?

Select one:

a.

-RM 1,500

b.

RM 1,500

c.

RM 2,000

d.

RM 2,500