Question
You purchase one IBM July 180 put contract for a premium of $3. You hold the option until the expiration date, when IBM stock sells
You purchase one IBM July 180 put contract for a premium of $3. You hold the option until the expiration date, when IBM stock sells for $175 per share. You will realize a ______ on the investment (including the premium). A. $300 profit B. $300 loss C. $500 loss D. $200 profit
correct answer is $200 profit but how. Please explain
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
Personal Finance
Authors: E Thomas Garman, Raymond E Forgue
10th Edition
143903902X, 9781439039021
