Question
Let us say you purchase one IBM July 125 put contract (equaling 100 shares) for a premium of $2. You hold the option until the
Let us say you purchase one IBM July 125 put contract (equaling 100 shares) for a
premium of $2. You hold the option until the expiration date when IBM stock sells for $110
per share. What is your profit/loss on your investment in IBM when the stock sells at $110? Find
out the break-even point of your investment in this put option contract. What can be your
maximum and minimum profit/loss on this call contract?
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Advanced Stocks Analysis A Fundamentalist Approach
Authors: Luciano Storelli ,Storelli And Pepe Stocks Investments
1st Edition
979-8395523006
