A stock currently trades at $110.June put options on the stock with a strike price of $100 are priced at $5.25.Calculate the dollar return on one put contract.
A) -$525
B) $1000
C) $0
D) -$1000
E) $525

Name: A stock currently trades at $110.June put options on the stock with a strike price of $100 are priced at $5.25.Calculate the dollar return on one put contract. A) -$525 B) $1000 C) $0 D) -$1000 E) $525
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Question

Quizplus · Accepted Answer

Dollar return = (100 - 110 - 5.25)(100)= -$525

A Stock Currently Trades at $110