Question
Alex sold 5 put option contracts for NAB shares, with a strike price of $8.60. At the expiry date the market price, or spot price,
Alex sold 5 put option contracts for NAB shares, with a strike price of $8.60. At the expiry date the market price, or spot price, is $6.70. Each contract contains 100 shares.
What would Alex's loss be if the buyer of the option exercised this option?
Jay received a premium of $0.30 per share.
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
