单选题 Jimmy Casteel pays a premium of $1.60 to buy a put option with a strike price of $145. If the stock price at expiration is $128, Casteel's profit or loss from the options position is:

A、

A. $18.40.
B、

B. $1.60.
C、

C. $15.40.

【正确答案】 C

【答案解析】The put option will be exercised and has a value of $145 - $128 = $17 [Max (0, X -S) ]. Therefore, Casteel receives $17 minus the $1.60 paid to buy the option. Therefore, the profit is $15.40 ( $17 less $1.60).