Walt wrote a put option that had a $15 strike price on ABC stock when the stock price was $16 per share. The option premium was $3. What is the maximum profit (per share) that Walt can make on his option position?
A) $2
B) $3
C) $15
D) $16

Question

Quizplus · Accepted Answer

The maximum profit Walt can make is the option premium he received, which is $3 per share. This occurs if the option expires worthless, meaning the stock price stays above the $15 strike price.

Walt Wrote a Put Option That Had a $15 Strike