Answered step by step
Verified Expert Solution
Question
1 Approved Answer
For this and next three questions, assume: You bought Stock A at a purchase price of: $40 Put option strike price: $40 Option expires in
For this and next three questions, assume:
You bought Stock A at a purchase price of: $40 Put option strike price: $40 Option expires in 90 days Price of put option: $8
Return (%) = 100 * (payoff purchase cost)/purchase cost
Express as positive or negative percent to nearest whole percent, e.g. -100% = -100
You bought only the put option, and not the stock.
What is the return on the put option (%) if you sell it when the stock goes up to 55?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started