Question
Suppose a stock is trading at $47.11. A market participant writes 8 put option contracts (where 1 contract is for 100 shares) on the stock
Suppose a stock is trading at $47.11. A market participant writes 8 put option contracts (where 1 contract is for 100 shares) on the stock with a strike price of $50.14 when the option price is $3.98 per share. The options are exercised when the stock price is $49.06. What is the market participants net profit or loss?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
