Question: You write a put option on a stock for a premium of $1. The exercise price is $6.50. What is the option's profit or loss

 You write a put option on a stock for a premium

You write a put option on a stock for a premium of $1. The exercise price is $6.50. What is the option's profit or loss if just prior to expiration the stock price is $4.50? a. $0.50 b. $0.00 oc. ($0.50) O d. ($1.00) O e. $1.00

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!