You bought a put option of K = 100 and it expires in 2 months. Current...
You bought a put option of K = 100 and it expires in 2 months. Current stock price is 101. You paid $3 for the put. If the stock price on the expiration day is 92. Do you make or lose money? How much?
Homework Answers
A put option makes money when spot price at expiry is less than strike price
Profit=MAX(100-92,0)-3=5
Profit of $5
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