Question
XLB is currently trading at $46. You decide to buy a put option on 100 shares of XLB with a strike price of $45, priced
XLB is currently trading at $46. You decide to buy a put option on 100 shares of XLB with a strike price of $45, priced at $1.20.
a) At expiration, XLB is trading at $40. Calculate your profit.
b) If at expiration, the stock XLB is at $ 50, recalculate your profit or loss.
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
The Leverage Space Trading Model
Authors: Ralph Vince
1st Edition
0470455950, 978-0470455951
