Brookfield stock is selling for $50 a share, the $50 puts are priced at $0.49, and...
Brookfield stock is selling for $50 a share, the $50 puts are priced at $0.49, and the $50 calls are priced at $0.92. How much will you receive if you write ten $50 put option contracts?
|
$980.00 |
||
|
$740.00 |
||
|
$490.00 |
||
|
$320.00 |
||
|
$2,120.00 |
Homework Answers
The amount that we will receive if we write ten $50 put option contracts is computed as shown below:
= $ 0.49 x 100
= $ 490
So the correct answer is option of $ 490
Feel free to ask in case of any query relating to this question
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