we are assuming 1 share of stock for 1 Put Option. An investor buys a Put...

  

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we are assuming 1 share of stock for 1 Put Option. An investor buys a Put Option of Widget stock on March 1. Option Price: $6.00/1 share of Stock; Expiration Date June 1; Strike Price: $140; Current Market Price of XYZ is $150 on March 1; The investor exercises the option on May 4; Widget Stock trades @ $124 on the exercise date; What is the Net Gain or Lose? we are assuming 1 share of stock for 1 Put Option. An investor buys a Put Option of Widget stock on March 1. Option Price: $6.00/1 share of Stock; Expiration Date June 1; Strike Price: $140; Current Market Price of XYZ is $150 on March 1; The investor exercises the option on May 4; Widget Stock trades @ $124 on the exercise date; What is the Net Gain or Lose?

Answer rating: 100% (QA)

To calculate the net gain or loss from exercising the put option well go step by step 1 Option Premium Paid The investor paid 600 for one share of the ... View the full answer