The price of a stock is $64. A trader buys 1 put option contract (each contract is for 100 options) 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 below $54 When the stock price is below $60 When the stock price is below $50 When the stock price is below $64 ◄ Previous Next ▸

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The price of a stock is $64. A trader buys 1 put option contract (each contract is for 100
options) 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 below $54
O When the stock price is below $60
O When the stock price is below $50
O When the stock price is below $64
◄ Previous
Next ▸
Transcribed Image Text:The price of a stock is $64. A trader buys 1 put option contract (each contract is for 100 options) 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 below $54 O When the stock price is below $60 O When the stock price is below $50 O When the stock price is below $64 ◄ Previous Next ▸
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