Question
The price of Disney stock on February 1 is $96. A trader sells 200 put options on the stock with a strike price of $80
The price of Disney stock on February 1 is $96. A trader sells 200 put options on the stock with a strike price of $80 when the option price is $4. (Show Work)
|
| Stock Price | Option Price | Number Sold | Strike Price |
| Disney Stock | $96 |
|
|
|
| Put Option on Disney Stock |
| $4 | 200 | $80 |
The trader maintains the short put position until expiration when the stock closes at $78. What is the net gain or loss on the position?
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Financial Institutions Management
Authors: Anthony Saunders
3rd Edition
007303259X, 978-0073032597
