You bought a put with a strike price of $25.The current stock price is $23.What is the current payoff value of this option?
A)-$2
B)-$1
C)$0
D)$1
E)$2

Name: You bought a put with a strike price of $25.The current stock price is $23.What is the current payoff value of this option? A)-$2 B)-$1 C)$0 D)$1 E)$2
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Question

Quizplus · Accepted Answer

The payoff of a put option is calculated as the strike price minus the current stock price. Here, $25 - $23 = $2.

You Bought a Put with a Strike Price of $25