Question
A trader sells (or writes, or shorts) 100 European put options with a strike price of $50 and a time to maturity of six months.
A trader sells (or writes, or shorts) 100 European put options with a strike price of $50 and a time to maturity of six months. The price received for each option is $3. The price of the underlying asset proves to be $45 in six months. What is the traders profit?
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Essentials Of Real Estate Finance
Authors: David Sirota
11th Edition
1419520911, 9781419520914
