Welch Co. purchased a put option on Reese ordinary shares on January 7, 2022, for 215....
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Welch Co. purchased a put option on Reese ordinary shares on January 7, 2022, for €215. The put option is for 300 shares, and the strike price is €51. The option expires on July 31, 2022. The following data are available with respect to the put option: Date March 31, 2022 June 30, 2022 July 6, 2022 Market Price of Reese Shares €48 per share €50 per share €46 per share Time Value of Put Option €120 54 16 Welch settles the put option on the Reese shares on July 6, 2022. Please compute the profit/loss for the put option transaction. (A) € 2,000 (B) € 1,285 (C) € 1,301 (D) € 1,269 Welch Co. purchased a put option on Reese ordinary shares on January 7, 2022, for €215. The put option is for 300 shares, and the strike price is €51. The option expires on July 31, 2022. The following data are available with respect to the put option: Date March 31, 2022 June 30, 2022 July 6, 2022 Market Price of Reese Shares €48 per share €50 per share €46 per share Time Value of Put Option €120 54 16 Welch settles the put option on the Reese shares on July 6, 2022. Please compute the profit/loss for the put option transaction. (A) € 2,000 (B) € 1,285 (C) € 1,301 (D) € 1,269
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