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A, You purchase one Blue Bell Inc. September 110 put contract for a premium of $7.34. You hold the option until the expiration date when

A,

You purchase one Blue Bell Inc. September 110 put contract for a premium of $7.34. You hold the option until the expiration date when Blue Bell stock sells for $130.07 per share. Calculate gain/loss that you will realize on this investment. Remember that the size of the option contract is 100.

Loss should be entered with minus sign.

Round the answer to two decimal places.

Answer:

B.

You write one Boston Inc. December 125 put option contract for a premium of $7.35. You hold the position until the expiration date when Boston Inc. stock sells for $131.95 per share. Calculate gain/loss that you will realize on this investment. Remember that the size of the option contract is 100.

Loss should be entered with minus sign.

Round the answer to two decimal places.

Answer:

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