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Please answer the question based on per share price, per share premium etc. Also, this question is asking from the seller of the put options
Please answer the question based on per share price, per share premium etc.
Also, this question is asking from the seller of the put options point of view.
- The market price for Alibaba Group Holding Limited (Ticker: BABA) was $235.60 when Mary sold a put optiontoday. The put premium is $6.05 and the exercise price is $225. The option will be expired on April 9, 2021.
- Draw the contingency graph for Mary. Label each point/interaction on the graph.
- What is the break-even point for Mary?
- What are Marys maximum profit and maximum loss?
- Show the profit/loss for Mary if, at the expiration date, the Alibaba is (1) $150, (2) $220, and (3) $270.
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