Question
You bought Stock A at a purchase price of: $25 Put option strike price: $25 Option expiration date: June 30, 2022 Price of put option:
You bought Stock A at a purchase price of: $25 Put option strike price: $25 Option expiration date: June 30, 2022 Price of put option: $5
a) What is the percentage return on the stock if you sell when stock goes up to $50?
Assume that you bought only the stock, and not the put option.
b) If you bought only the put option, what is the percentage return on the option if you sell when stock goes up to $50?
c) What is the percentage return on the stock if you sell when stock goes down to $5?
Assume that you bought only the stock, and not the put option.
d) If you bought only the put option, what is the percentage return on the put if you sell when stock goes down to $5?
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