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The market price for Zoom (Ticker: ZM) was 140.10 when Sarah sold a put option today. The put premium is $12.30 and the exercise price
The market price for Zoom (Ticker: ZM) was 140.10 when Sarah sold a put option today. The put premium is $12.30 and the exercise price is $100. The option will be expired on January 15, 2021.
A. Draw the contingency graph for Sarah. Label each point on the graph
B. What is the break-even point for Sarah
C. What are Sarah's maximum profit and maximum loss?
D. Show the profit / loss for Sarah, if at the expiration date, the Zoom price is (1) 80 (2) 90, and (3) 150
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