
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
The price of a stock on February 1 is $84. A trader buys 200 put options on the stock with a strike price of $90 when the option price is $10. The options are exercised when the stock price is $85.
The trader’s net profit or loss is
Gain of $200 |
||
Loss of $1,000 |
||
Gain of $1000 |
||
Loss of $2,000 |
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