A PUT and a CALL option are written on a stock with a strike price of $60. The options are held until expiration. Suppose the stock price at expiration is $75. Put premium is $3. The PUT option WRITER’S profit would be: a) -$3 b) $3 c) -$15 d) $15 e) None of the above
A PUT and a CALL option are written on a stock with a strike price of $60. The options are held until expiration. Suppose the stock price at expiration is $75. Put premium is $3. The PUT option WRITER’S profit would be: a) -$3 b) $3 c) -$15 d) $15 e) None of the above
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A PUT and a CALL option are written on a stock with a strike
price of $60. The options are held until expiration.
Suppose the stock price at expiration is $75. Put premium is $3. The PUT option WRITER’S profit would be:
a) -$3
b) $3
c) -$15
d) $15
e) None of the above
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