You own a put option on a stock and the strike price of the option is $30.The option has 3 weeks until expiration and the stock is currently priced at $35 per share.What is the largest payout possible for this put option? Ignore the original cost of the option for the payout calculation.
A) $0
B) $5
C) $30
D) the payout is unlimited
Correct Answer:
Verified
Q21: You purchase a call option and a
Q22: You own 100 shares of a stock
Q23: Bavarian Brew issued convertible bonds with a
Q24: You need to immediately purchase 100 shares
Q25: If you purchase the right to sell
Q27: A call option with a $35 strike
Q28: You notice that the price of a
Q29: One of the main reasons for the
Q30: You sold a call option on a
Q31: You notice that you can purchase an
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents