You write a put with a strike price of $90 on a stock you have shorted at $90. If the stock price at expiration is $93.12, what is your profit per share if the put premium was $4.15?
A) $4.15
B) $7.17
C) $3.12
D) -$2.09
E) $1.03

Question

Quizplus · Accepted Answer

The profit per share is calculated as the premium received ($4.15) minus the loss from the short position ($93.12 - $90 = $3.12), resulting in a profit of $1.03 per share.

You Write a Put with a Strike Price of $90