Question
One year ago, you wrote a put option with strike price $30 and one year to expiration. Option premium was $12. Ignore the interest rate.
One year ago, you wrote a put option with strike price $30 and one year to expiration. Option premium was $12. Ignore the interest rate. Today is the expiration day, and you still have an open short position in the put. The underlying stock is trading at $42. Your profit is
| a. | $42 | |
| b. | $18 | |
| c. | $12 | |
| d. | Zero. You just broke even. |
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Financial Crisis Causes Context And Consequences
Authors: Adrian Buckley
1st Edition
1553395417, 9781553395416
