You are long in a put option with an exercise price of $60. What is the value of the put at Maturity? If the put premium at the time of purchase was $4, what is your profit or loss on the position? Use stock prices of 45, 50, 60, 65, and 70.

You are long in a put option with an exercise price of $60. What is the value of the put at Maturity? If the put premium at the time of purchase was $4, what is your profit or loss on the position? Use stock prices of 45, 50, 60, 65, and 70.

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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You are long in a put option with an exercise price of $60. What is the value
of the put at Maturity? If the put premium at the time of purchase was $4,
what is your profit or loss on the position? Use stock prices of
45, 50, 60, 65, and 70.

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