What is the payoff for the buyer of a put option with a strike price of $63 if the underlying stock price at expiration is $43?

Question

Quizplus · Accepted Answer

The payoff for the buyer of a put option is the difference between the strike price and the stock price at expiration, if this difference is positive. Here, it's $63 - $43 = $20. If the stock price is below the strike price, the buyer can sell the stock at the higher strike price, thus making a profit equal to the difference.

What Is the Payoff for the Buyer of a Put