You sold a $30 put contract on EDF stock at an option price of $1.30.The option was exercised when the stock price was $26.10 a share.What is your total net profit or loss?

Name: You sold a $30 put contract on EDF stock at an option price of $1.30.The option was exercised when the stock price was $26.10 a share.What is your total net profit or loss?
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Question

Quizplus · Accepted Answer

Total loss = ($1.30 - 30 + 26.10)× 100 = -$260When the option was exercised,you were obligated to buy at $30.

You Sold a $30 Put Contract on EDF Stock at an Option