You sold 2 put options with an exercise price X = $20 and bought 1 call option with X = $18. Both options expire in six months. At expiration, the stock price is $19. What is the payoff on this strategy? Note that each option is on one share of stock.

 

A.           +2

B.           +1

C.           0

D.           -1 

E.            -2

Answer rating: 100% (QA)

For the two sold put options with an exercise price of 20 the payoff ... View the full answer