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A put option on MSFT (Microsoft) stock has the following terms: exercise/ strike price is $320; expiration date is December 30, 2022; the option premium is $20. The investor holds this option until the expiration date. On the expiration date, MSFT share price is $310. The investor made a on this option. Assume each option contract is for 1 Microsoft share. Oprofit of $30 Oloss of $10 loss of $20 profit of $20

A put option on MSFT (Microsoft) stock has the following terms: exercise/ strike price is $320; expiration date is December 30, 2022; the option premium is $20. The investor holds this option until the expiration date. On the expiration date, MSFT share price is $310. The investor made a on this option. Assume each option contract is for 1 Microsoft share. Oprofit of $30 Oloss of $10 loss of $20 profit of $20

Essentials Of Investments
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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A put option on MSFT (Microsoft) stock has the following terms: exercise/ strike price is $320; expiration date is December 30, 2022; the option premium is $20. The investor holds this option until the expiration date. On the expiration date, MSFT share price is $310. The investor made a on this option. Assume each option contract is for 1 Microsoft share. Oprofit of $30 loss of $10 loss of $20 profit of $20
Transcribed Image Text:A put option on MSFT (Microsoft) stock has the following terms: exercise/ strike price is $320; expiration date is December 30, 2022; the option premium is $20. The investor holds this option until the expiration date. On the expiration date, MSFT share price is $310. The investor made a on this option. Assume each option contract is for 1 Microsoft share. Oprofit of $30 loss of $10 loss of $20 profit of $20
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