Question
XYZ stock is currently trading at a market price (S) of $50. You do not own the stock, but you are long a put option
XYZ stock is currently trading at a market price (S) of $50. You do not own the stock, but you are long a put option on 1 share with a strike price (X) of $43. The put cost (premium) was $2. The stock price falls to 42 on expiration date. Do you exercise the option?
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International Finance The Markets And Financial Management Of Multinational Business
Authors: Maurice D. Levi
3rd Edition
0070376875, 978-0070376878
