Mr. A bought a put option of 6 months for a price of $50. The strike...

 

Transcribed Image Text:

Mr. A bought a put option of 6 months for a price of $50. The strike price is $150. At the end of 6 months, the stock is selling for a price of $180. Calculate the profit/loss from the option. A. Profit of $30 B. Loss of S20 C. Loss of S50 D. Profit of $50 Mr. A bought a put option of 6 months for a price of $50. The strike price is $150. At the end of 6 months, the stock is selling for a price of $180. Calculate the profit/loss from the option. A. Profit of $30 B. Loss of S20 C. Loss of S50 D. Profit of $50

Answer rating: 100% (QA)

ANSWER since the put option gives us the right to sell the stock at the exercise date at the exercis... View the full answer