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Questions 2 parts: 1. Apple is currently trading at $122 per share. You buy a put option on Apple with a strike price of $110.

Questions 2 parts:

1.

Apple is currently trading at $122 per share. You buy a put option on Apple with a strike price of $110. The option will expire at the end of this week.

If the stock is trading at $105 at the end of this week, what will be the payoff of the put?

2.

Apple is currently trading at $122 per share. You buy a put option on Apple with a strike price of $110. The option will expire at the end of this week.

If the stock is trading at $125 at the end of this week, what will be the payoff of the put?

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