You have purchased a put option on Texas Instrument's common stock. The option has an exercise...

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You have purchased a put option on Texas Instrument's common stock. The option has an exercise price of $50 and Texas Instrument's stock currently trades at $52. The option premium is $0.50 per contract. a. What is your net profit on the option if Texas Instrument's stock price does not change over the life of the option? b. What is your net profit on the option if Texas Instrument's stock price falls to $48 and you exercise the option? (For all requirements, negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) a. Net profit per share b. Net profit per share You have purchased a put option on Texas Instrument's common stock. The option has an exercise price of $50 and Texas Instrument's stock currently trades at $52. The option premium is $0.50 per contract. a. What is your net profit on the option if Texas Instrument's stock price does not change over the life of the option? b. What is your net profit on the option if Texas Instrument's stock price falls to $48 and you exercise the option? (For all requirements, negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) a. Net profit per share b. Net profit per share

Answer rating: 100% (QA)

Put Option means having an option but not an option to sell a particular stock at an exercise p... View the full answer