Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You sell a put option on ABC stock for $2.25 with a strike price of $50. Today, ABC is trading at $53. The holder of

image text in transcribed You sell a put option on ABC stock for $2.25 with a strike price of $50. Today, ABC is trading at $53. The holder of the option chooses to exercise. What is your return? (Use $2.25 as initial equity invested) A) 80% B) 100% C) 133% D) 60%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Building Your Future

Authors: Robert B. Walker, Kristy P. Walker

1st edition

9780077861728, 978-0073530659

More Books

Students also viewed these Finance questions

Question

How is the working-age population defined?

Answered: 1 week ago