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Assume an investor sells a six-month put option with an exercise price of $50 and a premium of $7.55. The payoff for the put at
Assume an investor sells a six-month put option with an exercise price of $50 and a premium of $7.55. The payoff for the put at expiration is a function of the share price at that time. The investor forecasts a combination of five possible share prices that will occur in six-months time. What is the maximum profit, to the seller of the option? Give your answer to two decimal places.
Possible share price at expiration:
$22.19, $32.09, $41.4, $59.73, $73.21
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