Robert writes a put option on Cisco shares. The details are Exercise price = $180, Expiration=30th June

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Robert writes a put option on Cisco shares. The details are Exercise price = $180,

Expiration=30th June 2020, Current Option Premium = $9. Assume this is an American

Option. On 1st of May, if the Cisco shares are trading at $155, calculate the profit or

loss for Robert on his options position.

Posted Date: May 10, 2024 04:11 AM

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Robert writes a put option on Cisco shares. The details are Exercise price = $180, Expiration=30th June

Question:

Expert Answer:

Roberts Profit or Loss on the Put Option Since this is an American Option meaning it can be exercised early we need to consider two scenarios Scenario ... View the full answer

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