Question
Looking at the table bellow, suppose you buy 10 Vandelay Industries January 23 put contracts. a. How much does this cost (ignoring commissions)? a. Just
Looking at the table bellow, suppose you buy 10 Vandelay Industries January 23 put contracts.
a. How much does this cost (ignoring commissions)?
a. Just before the option expires, Vandelay Industries is selling for $21.50 per share. Is this good news or bad news? What is your net profit?
b. Imagine that instead of put options, you had bought $23 call options. What would be your net profit if before expiration date the stock would be selling at $21.50?
4. Looking at the table bellow, suppose you buy 10 Vandelay Industries January 23 put contracts. January, 2018 Expires January 19. 2018 a. How much does this cost (ignoring commissions)? a. Just before the option expires, Vandelay Industries is selling for $21.50 per share. Is this good news or bad news? What is your net profit? b. Imagine that instead of put options, you had bought $23 call options. What would be your net profit if before expiration date the stock would be selling at $21.50
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