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