An investor purchased 200 Euro put options for $0.028 each in June, with an expiration date...
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An investor purchased 200 Euro put options for $0.028 each in June, with an expiration date in September and a strike price of $1.39. Part 1 What is the maximum profit the investor can make (in $)? 272.40 Correct ✓ The maximum profit from a put option occurs when the stock price goes down to zero: Maximum payoff = X-ST= 1.390 1.39 Maximum profit = = 200- (1.39-0.028) = 272.4 272.40 Try again Number of options (Payoff - Premium) Try again Attempt 1/10 for 10 pts. = .. Part 2 At what stock price on the expiration date does the investor break even? See solution (-1 pts.) Attempt 1/10 for 10 pts. An investor purchased 200 Euro put options for $0.028 each in June, with an expiration date in September and a strike price of $1.39. Part 1 What is the maximum profit the investor can make (in $)? 272.40 Correct ✓ The maximum profit from a put option occurs when the stock price goes down to zero: Maximum payoff = X-ST= 1.390 1.39 Maximum profit = = 200- (1.39-0.028) = 272.4 272.40 Try again Number of options (Payoff - Premium) Try again Attempt 1/10 for 10 pts. = .. Part 2 At what stock price on the expiration date does the investor break even? See solution (-1 pts.) Attempt 1/10 for 10 pts.
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