What is the payoff for a put option with a strike price of $22 if the price of the underlying stock at expiration is $19?

Question

Quizplus · Accepted Answer

The payoff for a put option is calculated as the strike price minus the stock price at expiration (if the stock price is below the strike price). In this scenario, the stock price is $19 which is below the strike price of $22, so the payoff is $22 - $19 = $3. Therefore, the correct answer is B.

What Is the Payoff for a Put Option with a Strike