Question
You write one MBI July 120 put contract (equaling 100 shares) for a premium of $4. You hold the option until the expiration date, when
You write one MBI July 120 put contract (equaling 100 shares) for a premium of $4. You hold the option until the expiration date, when MBI stock sells for $121 per share. You will realize a ______ on the investment.
Multiple Choice
a) $200 loss
b) $400 profit
c) $300 profit
d) $600 loss
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
