Question
A put option on IBM stock has a premium of $8 and an exercise price of $98. Ignoring commissions, the writer of the option will
A put option on IBM stock has a premium of $8 and an exercise price of $98. Ignoring commissions, the writer of the option will earn a positive profit at which of the following share prices?
a. 98
b. 108
c. 104
d. 90
e. none of the above
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
