Suppose you write the following put option (1 option, not 1 contract containing 100 options). What is the payoff and profit at expiration if the stock price is$75?PutStrike Symbol80 ABC210621C00040000Last3.32a. payoff is -5.00; profit is 1.68 Xb. payoff is -5.00; profit is 3.32c. payoff is 0; profit is 0d. payoff is -5.00; profit is -1.68e. payoff is 0; profit is -3.32Chg1.47

An option is an agreement between two parties granting one the opportunity to buy or sell a security…

Answered: Suppose you write the following put…

Suppose you write the following put option (1 option, not 1 contract containing 100 options). What is the payoff and profit at expiration if the stock price is $75?

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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Question

Suppose you write the following put option (1 option, not 1 contract containing 100 options). What is the payoff and profit at expiration if the stock price is
$75?
Put
Strike Symbol
80 ABC210621C00040000
Last
3.32
a. payoff is -5.00; profit is 1.68 X
b. payoff is -5.00; profit is 3.32
c. payoff is 0; profit is 0
d. payoff is -5.00; profit is -1.68
e. payoff is 0; profit is -3.32
Chg
1.47

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