You short a put option for a price of $2.5 per share with an excercise price...
Homework Answers
AS YOU HAVE SHORT A PUT, YOU ARE WRITER OF PUT OPTION.
FOR A WRITER, THE PREMIUM IS INCOME = 2.50
IF PRICE DECREASES, THE PAYOFF WILL BE NEGATIVE FOR WRITER OF A PUT OPTION
AS YOU HAVE RECEIVED A PREMIUM OF 2.5, YOU WILL NOT INCUR ANY LOSS TILL PRICE DECREASES BY 2.5.
SO
BREAK EVEN PRICE = EXERCISE PRICE - PREMIUM RECEIVED = 150 - 2.5 = 147.5
ANSWER : 147.5 (Thumbs up please)
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short a put option for a price of $2.5 per share with an excercise
price...
You short a put option for a price of $2.5 per share with an exercise price...
You short a put option for a price of $2.5 per share with an exercise price of $150. And the current underlying stock price is $154. What is the break-even stock price for your investment?
You short a put option for a price of $2.5 per share with an exercise price...
You short a put option for a price of $2.5 per share with an exercise price of $150. And the current underlying stock price is $154. What is the break-even stock price for your investment? Please provide steps of calculation. the answer is not 147.5. please do not copy and paste a wrong answer.
Please show work. Thank you! 11) Jaime wrote (sold) a nine-month put on Beta stock (each put option is for 100 units of...
Please show work. Thank you!
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Please show work. Thank you!
11) Jaime wrote (sold) a nine-month put on Beta stock (each put option is for 100 units of stock). The strike price was $25 and the market price at the time the option was written was $24. The total price of the option was $150 ($1.50 premium per stock). At what market price will Jamie just break-even on this investment? Ignore transaction costs and taxes and assume zero interest rate. Show graph and calculations
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