Question

The price of a stock is $64. A trader buys 1 put option contract on the stock with a strike price of $60 when the option...

The price of a stock is $64. A trader buys 1 put option contract on the stock with a strike price of $60 when the option price is $10. When does the trader make a profit?

When the stock price is higher than $70

none of the above

When the stock price is higher than $64

When the stock price is lower than $50

When the stock price is lower than $54

0 0
Add a comment Improve this question Transcribed image text
Answer #1

answer: When the stock price is lower than $50 Put is excercised as the stock price is less compared to strike price.

Add a comment
Know the answer?
Add Answer to:
The price of a stock is $64. A trader buys 1 put option contract on the stock with a strike price of $60 when the option...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT