You buy a put option on a stock for a premium of $1. The exercise price...

Question

Question

You buy a put option on a stock for a premium of $1. The exercise price is $10.00. What is the options profit or loss if jus

business finance

Answer 1

Answer #1

Put Option will be exercised if the expiration Price is less than the exercise Price.

Profit = Exercise Price-Expiration Price-Premium Paid

Profit= $10.00-$8.50-$1.00

Profit = $0.50

Answer A

Answer 2

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