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market price, what is his gain or loss? A. $1,600 loss B. $8,000 gain C. $ 6,400 gain D. $3,200 loss

market price, what is his gain or loss? A. $1,600 loss B. $8,000 gain C. $ 6,400 gain D. $3,200 loss

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
Problem 1PS
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Jeffery writes 8 contracts of SUNZ Nov 50 put @ 8. When SUNZ is trading at $40, he is assigned the option. If Jeffery immediately sells the underlying shares he receives as a result of the exercised option at their market price, what is his gain or loss? A. $1,600 loss B. $8,000 gain C.$ 6,400 gain D. $3,200 loss
Transcribed Image Text:Jeffery writes 8 contracts of SUNZ Nov 50 put @ 8. When SUNZ is trading at $40, he is assigned the option. If Jeffery immediately sells the underlying shares he receives as a result of the exercised option at their market price, what is his gain or loss? A. $1,600 loss B. $8,000 gain C.$ 6,400 gain D. $3,200 loss
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