Question
You write one contract for PUT option for KO at $60 and charge the client $3/option. Its expiration date is in 3 weeks. On the
You write one contract for PUT option for KO at $60 and charge the client $3/option. Its expiration date is in 3 weeks. On the date of expiry, KO is trading at $63.
1. Will you have a gain, loss, or break even on this transaction?
2. Will your client be "in the money", "at the money", or "out of the money"?
3. What will be your client's ROR?
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
10th Edition
0128150750, 978-0128150757
