The price of a stock on February 1 is $124. A trader sells 200 put options on the stock with a strike price of $120 when the option price is $5. The options are exercised when the stock price is $110. The trader's net profit or loss is 

A) Gain of $1,000 

B) Loss of $2,000 

C) Loss of $2,800 

D) Loss of $1,000

Answer rating: 100% (QA)

When put options are sold then traders net profit Total premium received Payoff Where ... View the full answer