Question: Hello Q-2 Question 2 1 pts On May 20th, a trader buys two hundred December put options (= 2 option contracts) with a strike price

Hello

Q-2

Hello Q-2 Question 2 1 pts On May 20th, a trader
Question 2 1 pts On May 20th, a trader buys two hundred December put options (= 2 option contracts) with a strike price of $21. The stock price is $21.96 and the option price is $4.12. At the expiration, the stock price becomes $19.15. What is the option profit to the trader? If it is a loss, then enter a negative value. For example, if the loss is $123.45, then enter "-123.45"

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!