Please show step by step how to solve this CBE is currently trading at $120/share. You sold 8 PUT-option contracts on CBE with a strike price of $110 for $8 each. a. What will be your total $ and % gain/loss if WRE price is $130 at the expiration date?b. What will be your total $ and % gain/loss if WRE price is $115 at the expiration date?c. What will be your total $ and % gain/loss if WRE price is $100 at the expiration date?
Please show step by step how to solve this CBE is currently trading at $120/share. You sold 8 PUT-option contracts on CBE with a strike price of $110 for $8 each. a. What will be your total $ and % gain/loss if WRE price is $130 at the expiration date?b. What will be your total $ and % gain/loss if WRE price is $115 at the expiration date?c. What will be your total $ and % gain/loss if WRE price is $100 at the expiration date?
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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Please show step by step how to solve this
CBE is currently trading at $120/share. You sold 8 PUT-option contracts on CBE with a strike price of $110 for $8 each.
a. What will be your total $ and % gain/loss if WRE price is $130 at the expiration date?
b. What will be your total $ and % gain/loss if WRE price is $115 at the expiration date?
c. What will be your total $ and % gain/loss if WRE price is $100 at the expiration date?
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