A put on Sanders stock with a strike price of $35 is priced at $2 per share, while a call with a strike price of $35 is priced at $3.50. The maximum per-share loss to the writer of an uncovered put is ________, and the maximum per-share gain to the writer of an uncovered call is ________.

Question

Quizplus · Accepted Answer

Maximum per-share loss to put writer = (0 − 35) + 2 = −33 if stock price is $0 at expiration.
Maximum per share gain to call writer = 3.50 if stock price is below $35 at expiration.

A Put on Sanders Stock with a Strike Price of $35