One year ago, you wrote a put option with strike price $30 and one year to expiration. Option premium was $12. Ignore the interest rate. Today is the expiration day, and you still have an open short position in the put. The underlying stock is trading at $42. Your profit is a. Zero. You just broke even. b. $18 c. $42 d. $12

One year ago, you wrote a put option with strike price $30 and one year to expiration. Option premium was $12. Ignore the interest rate. Today is the expiration day, and you still have an open short position in the put. The underlying stock is trading at $42. Your profit is a. Zero. You just broke even. b. $18 c. $42 d. $12

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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