You purchase one June 70 put contract for a put premium of $4.What is the maximum profit that you could gain from this strategy
A)$7,000
B)$400
C)$7,400
D)$6,600
E)None of the options

Name: You purchase one June 70 put contract for a put premium of $4.What is the maximum profit that you could gain from this strategy A)$7,000 B)$400 C)$7,400 D)$6,600 E)None of the options
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

-$400 + $7,000 = $6,600 (if the stock falls to zero).

You Purchase One June 70 Put Contract for a Put