Question
John purchased 3 put option contracts at an option premium of $0.95 and a strike price of $40. At expiration, the stock price was $42.25
John purchased 3 put option contracts at an option premium of $0.95 and a strike price of $40.
At expiration, the stock price was $42.25 per share. What is his percentage return?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate Johns percentage return on the put option contracts we first need to determine the tota...
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Step: 2
Step: 3
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
