QUESTIONS 91 THROUGH 96 RELATE TO DERIVATIVE INVESTMENTS.

95. A market participant has a view regarding the potential movement of a stock. He

sells a customized over-the-counter put option on the stock when the stock is

trading at $38. The put has an exercise price of $36 and the put seller receives

$2.25 in premium. The price of the stock is $35 at expiration. The profit or loss

for the put seller at expiration is:

A. $(1.25)

B. $1.25

C. $2.25