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

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

You are analyzing a potential put option trade on Hedwig Corp. Lets

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.

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

\begin{tabular}{|l|l|l|} \hline Strike Price & Bid Price & Ask Price \\ \hline$45.00 & $8.67 & $8.91 \\ \hline$30.00 & $0.12 & $0.15 \\ \hline \end{tabular}

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