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You have purchased a put option on Pfizer common stock. The option has an exercise price of $53 and Pfizer?s stock currently trades at $55.
You have purchased a put option on Pfizer common stock. The option has an exercise price of $53 and Pfizer?s stock currently trades at $55. The option premium is $0.80 per contract. a. What is your net profit on the option if Pfizer?s stock price does not change over the life of the option? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) Net profit S per share b. What is your net profit on the option if Pfizer?s stock price falls to $50 and you exercise the option? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) Net profit S per share
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