Post by: brutforce on Apr 25, 2021
It is December 16th, and the table above shows prices of put options on shares of Dunder-Mifflin Paper. Last month you bought a March put with a strike price of $21.00. You paid a premium of $0.5 per share. Shares of Dunder-Mifflin are currently trading for $18.50. Because of bad news announced yesterday, you think that today is the lowest level that the stock will reach before the option expires in March. As a result, you want to close your position and take your profit. What is the profit of your long put position? (Calculate your profit for a whole contract on 100 shares.)
◦ $200
◦ $250
◦ $300
◦ $350
Post by: joewallace on Apr 25, 2021