An investor buys 2 ABC Jan 60 puts @ 4 when the market price of ABC is $59. ABC stock later falls to $40 and the investor buys the stock in the market and exercises the puts. The gain is: Group of answer choices $4,000 $3,200 $1,600 $800
An investor buys 2 ABC Jan 60 puts @ 4 when the market price of ABC is $59. ABC stock later falls to $40 and the investor buys the stock in the market and exercises the puts. The gain is: Group of answer choices $4,000 $3,200 $1,600 $800
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
Problem 1PS
Related questions
Question
An investor buys 2 ABC Jan 60 puts @ 4 when the market price of ABC is $59. ABC stock later falls to $40 and the investor buys the stock in the market and exercises the puts. The gain is:
Group of answer choices
$4,000
$3,200
$1,600
$800
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