The shares of Exxon are currently trading at $88. A “put buyer" recently paid a premium of $5 for the ability to buy the shares at $82 anytime during the next 45 days. What is the maximum gain and maximum loss possible for the seller of the option? $5, $82 $5, $77 $88, $5 $83, $5

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The shares of Exxon are currently trading at
$88. A “put buyer" recently paid a premium of
$5 for the ability to buy the shares at $82
anytime during the next 45 days. What is the
maximum gain and maximum loss possible for
the seller of the option?
$5, $82
$5, $77
$88, $5
$83, $5
Transcribed Image Text:The shares of Exxon are currently trading at $88. A “put buyer" recently paid a premium of $5 for the ability to buy the shares at $82 anytime during the next 45 days. What is the maximum gain and maximum loss possible for the seller of the option? $5, $82 $5, $77 $88, $5 $83, $5
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