Allison bought 100 shares of MIKO, Inc. stock at a price of $35 a share. In addition, she bought a put with a $35 strike price on MIKO at a cost of $125. Which of the following are true about Allison's position from now until the option expiration date?
I. Her maximum loss is $3,625.
II. Her maximum loss is $125.
III. Her minimum gain is $125.
IV. Her maximum profit is unlimited.

Question

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The Answer of Allison bought 100 shares of MIKO, Inc. stock at a price of $35 a share. In addition, she bought a put with a $35 strike price on MIKO at a cost of $125. Which of the following are true about Allison's position from now until the option expiration date?
I. Her maximum loss is $3,625.
II. Her maximum loss is $125.
III. Her minimum gain is $125.
IV. Her maximum profit is unlimited.

Allison Bought 100 Shares of MIKO, Inc