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:

 

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.

Transcribed Image Text:

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

Answer rating: 100% (QA)

The amount of money you will have if you buy the 45 strike price put option is 4500 This ... View the full answer