A put option on a stock has an exercise price of $27.25. If the stock price...

Question

Question

A put option on a stock has an exercise price of $27.25. If the stock price at expiration is $25, what is the option payoff for a long put position?

a. $2.25

b. $0

c. -$2.25

d. $5

Answer 1

Answer #1

The option pay off due to long position in put =Exercise Price -Stock Price =27.25-25 =2.25
Option a is correct option

Answer 2

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