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The price of Stock ABC is currently $70.A put option on 100 shares of Stock ABC has an exercise price of $75 and this option
- The price of Stock ABC is currently $70.A put option on 100 shares of Stock ABC has an exercise price of $75 and this option currently sells for a premium of $9.50.
A.What is the intrinsic value and the time value of the option today?
B.What is the break-even future stock price associated with the options?
C.If the stock price on the expiration date is $78, what is the net profit on this transaction to the person who wrote the option?The person who bought the option?
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