You purchase one IBM March 200 put contract for a put premium of $6. What is the maximum profit that you could gain from this strategy?
A) $20,000
B) $20,600
C) $19,400
D) $19,000

Name: You purchase one IBM March 200 put contract for a put premium of $6. What is the maximum profit that you could gain from this strategy? A) $20,000 B) $20,600 C) $19,400 D) $19,000
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Quizplus · Accepted Answer

$600 + $20,000 = $19,400 (if the stock falls to zero).

You Purchase One IBM March 200 Put Contract for a Put