You purchased 1 SPX put option with a strike of 1400. You wrote one SPX put option with the same maturity date and a strike of 1300. At maturity, what is your total payoff if the S&P 500 index is 1320?
A)−$8,000
B)−$2,000
C)$2,000
D)$4,000
E)$8,000

Question

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The Answer of You purchased 1 SPX put option with a strike of 1400. You wrote one SPX put option with the same maturity date and a strike of 1300. At maturity, what is your total payoff if the S&P 500 index is 1320?
A)−$8,000
B)−$2,000
C)$2,000
D)$4,000
E)$8,000

You Purchased 1 SPX Put Option with a Strike of 1400