Question: Consider a put option selling for $4 in which the exercise price is $60 and the price of the underlying is $62. Determine the value
Consider a put option selling for $4 in which the exercise price is $60 and the price of the underlying is $62. Determine the value at expiration and the profit for the buyer under the following outcomes. 1. The price of the underlying at expiration is $64 (2 marks) 11. The price of the underlying at expiration is $50 (2 marks) Determine the value at expiration and the profit for the seller under the following outcomes. 1 The price of the underlying at expiration is $51 (2 marks) 11. The price of the underlying at expiration is $68 (2 marks)
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