Question
Simon Templar bought 1 put option on shares of Massive Dynamic for a premium of $2.00 (per share). The strike price of the option is
Simon Templar bought 1 put option on shares of Massive Dynamic for a premium of $2.00 (per share). The strike price of the option is $30 and the stock price was $29.50. Subsequently, the price of Massive Dynamic shares fell to $28.00 and Simon sold one put option at a premium of $3.50 (per share). What was Simons profit (or loss) per share on the transactions?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Handbook Of Blockchain Digital Finance And Inclusion
Authors: David Lee, Robert H. Deng
1st Edition
012812282X, 978-0128122822
