Question
Pierre purchases a put option on Altec that has a strike price of $11 and a premium of $1. Altec's stock price is now at
Pierre purchases a put option on Altec that has a strike price of $11 and a premium of $1. Altec's stock price is now at $10, an all time high, although the stock has traded as low as $5 in 2008. What is the MAXIMUM profit that Pierre can hope to earn on this put option?
| $5 | ||
| $8 | ||
| $9 | ||
| $10 | ||
| $11 | ||
| Unlimited - there is no limit to Pierre's profit |
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
12th Edition
0471675792, 9780471675792
