Bluefish has a put option that trades with a strike price of $76. The put option...

Question

Question

Bluefish has a put option that trades with a strike price of $76. The put option premium is $11. Determine the profit/loss on

Answer 1

Answer #1

As the spot price is less than the strike price of the put
option, the option will be exercised.
For the writer of the option the loss will be 100*(51-76+11) =	$ -1,400

Answer 2

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