Answer: 1.00 per share

## Explanation Let's calculate the net profit/loss step by step: **Initial cost (net premium paid):** - Buy 1 put @ $43: -$6 - Sell 2 puts @ $37: +$8 ($4 × 2) - Buy 1 put @ $32: -$1 - **Total initial cost = -$6 + $8 - $1 = +$1** (net credit) **Payoffs at expiration (stock price = $19):** 1. **Put @ $43:** - Strike price = $43, Stock price = $19 - Payoff = max(43 - 19, 0) = $24 - Profit = $24 - $6 = $18 2. **Puts @ $37 (sold 2):** - Strike price = $37, Stock price = $19 - Payoff = max(37 - 19, 0) = $18 per put - Since we sold these puts, we pay this amount - Loss per put = $18 - $4 = $14 - Total loss from 2 puts = $28 3. **Put @ $32:** - Strike price = $32, Stock price = $19 - Payoff = max(32 - 19, 0) = $13 - Profit = $13 - $1 = $12 **Total profit/loss:** - Initial credit: +$1 - Put @ $43: +$18 - Puts @ $37: -$28 - Put @ $32: +$12 - **Total = $1 + $18 - $28 + $12 = $3** Wait, this gives $3, but let me recalculate more carefully: **Alternative calculation (net payoff approach):** - Net premium received = +$1 - Payoff from long positions: - Put @ $43: max(43-19,0) = $24 - Put @ $32: max(32-19,0) = $13 - Payoff from short positions: - Puts @ $37: -2 × max(37-19,0) = -2 × $18 = -$36 - Total payoff = $24 + $13 - $36 = $1 - Total profit = Payoff + Net premium = $1 + $1 = $2 Actually, let me verify once more: **Position-by-position calculation:** 1. Long put @ $43: Payoff = $24, Cost = $6 → Profit = $18 2. Short puts @ $37: Payoff = -$36, Premium received = $8 → Profit = -$28 3. Long put @ $32: Payoff = $13, Cost = $1 → Profit = $12 **Total profit = $18 - $28 + $12 = $2** Therefore, the net profit is **$2.00 per share**, making option D correct. This is a bear put spread strategy with additional positions that creates a limited profit profile when the stock price declines significantly.

Author: LeetQuiz Editorial Team