Question: Question 1 You bought a put option with a strike price of $90.00 and you paid a premium of $4.50. What is the profit of

Question 1

You bought a put option with a strike price of $90.00 and you paid a premium of $4.50.

What is the profit of this strategy if the underlying asset is trading for $73.55 on the day of expiration of the contract?

Question 2

You bought a put option with a strike price of $87.50 and you paid a premium of $3.00.

What is the RETURN of this strategy if the underlying asset is trading for $62.45 on the day of expiration of the contract?

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