Question: Suppose that you write ten put contracts with a strike price of $100 per share and an expiration date in six months. The current stock
Suppose that you write ten put contracts with a strike price of $100 per share and an expiration date in six months. The current stock price is $102 and one put option contract is written on 100 shares. You received $2 per underlying share for the put option contracts. What have you committed yourself to? How much could you gain or lose at expiration? In your answer, use stock prices at expiration of $60, $80, $100, and $120.
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