Question: You are analyzing a potential put option trade on Hedwig Corp. Let's say your research has led you to believe that the stock will be

You are analyzing a potential put option trade on Hedwig Corp. Let's say your research has led you to believe that the stock will be worth $25 per share in two months (it's currently $50). You have $9,000 to trade on your research, and the put options you are considering are shown below:

Strike Price $45.00 $30.00 Bid Price $8.67 $0.12 Ask Price $8.91 $0.15 

Stock Price Today$50.00   
Money to invest$9,000   
    
Stock Price in 2 months$0.00   
    
    
    
    
Buy $45 strike Put Option  Buy $30 strike Put Option


How much money will you have if you buy the $45 strike price put option? What about put options with a $30 strike price? Please show formulas used.

Strike Price $45.00 $30.00 Bid Price $8.67 $0.12 Ask Price $8.91 $0.15

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