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You just sold one European PUT option contract (100 options) on company AAAs stock. The options maturity is in December of this year, the strike
You just sold one European PUT option contract (100 options) on company AAAs stock. The options maturity is in December of this year, the strike price is $140, and the current market price of the stock is $150. The price of each put option is $8. Draw the profit (Gain/Loss) diagram of this position as a function of the stock price at the maturity of the option. What is the maximum profit and maximum loss possible to the seller of the option contract?
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