Mansukh Assume the stock of Company XYZ is selling for $150 right now. There is a put option on the stock with a strikeprice of $145 and a premium of $2. The option expires in two months.If you buy a put contract (the right to sell 100 stocks at the strike price of $145). What would be your net gain orloss from the entire trade if the stock price becomes $146?100Ⓒ400-200300

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If you buy a put contract (the right to sell 100 stocks at the strike price of $145). What would be your net gain or loss from the entire trade if the stock price becomes $146?

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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Question

Mansukh

Assume the stock of Company XYZ is selling for $150 right now. There is a put option on the stock with a strike
price of $145 and a premium of $2. The option expires in two months.
If you buy a put contract (the right to sell 100 stocks at the strike price of $145). What would be your net gain or
loss from the entire trade if the stock price becomes $146?
100
Ⓒ400
-200
300

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