You purchase one September 50 put contract for a put premium of $2.What is the maximum profit that you could gain from this strategy
A)$4,800
B)$200
C)$5,000
D)$5,200
E)None of the options

Name: You purchase one September 50 put contract for a put premium of $2.What is the maximum profit that you could gain from this strategy A)$4,800 B)$200 C)$5,000 D)$5,200 E)None of the options
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

-$200 + $5,000 = $4,800 (if the stock falls to zero).

You Purchase One September 50 Put Contract for a Put