Question
John purchased 300 shares of Big Trouble common stock at $25.51 a share in July of 2015. In June of 2016 John buys 3 October
John purchased 300 shares of Big Trouble common stock at $25.51 a share in July of 2015. In June of 2016 John buys 3 October 35 puts at 3. If the market of Big Trouble is trading at $31.58 at expiration, what is John's realized gain?
I know the answer is 1,947. I just need to understand how to get there. Please show your work.
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
