Question
Cara wrote a put option contract on EZ stock with an exercise price of $40 per share and an option price of $.65 per share.
Cara wrote a put option contract on EZ stock with an exercise price of $40 per share and an option price of $.65 per share. Today, the contracts expire and the stock is selling for $34.30 a share. What is the net profit on this investment? Ignore trading costs and taxes.
Multiple Choice
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$63.50
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$505.00
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$50.50
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$635.00
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$635.00
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
