Question
Lucius Cornelius CFA has written a put option with a strike price of $25. If the stock price is below $25 at expiration, what will
Lucius Cornelius CFA has written a put option with a strike price of $25. If the stock price is below $25 at expiration, what will happen to his position in the option?
a) he will have to buy the stock for $25
b) nothing - the long position will not exercise the option
c) he will earn the difference between $25 and the stock price
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Cases In Healthcare Finance
Authors: Louis Gapenski
5th Edition
1567936113, 978-1567936117
