Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price
Today you are writing a put option on TSLA stock, which is currently valued at $200 per share. The put option has a strike price of $183, 3 months to expiration, and currently trades at a premium of $4.9 per share.
If at maturity the stock is trading at $150, what is your net profit on this position? Keep in mind that one option covers 100 shares.
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