Ahmad bought put options on Home Depot with a strike price of $130. The option premium was $2.83. Just before the contract expired, Home Depot stock was at $132.83 per share. Ahmad
A) made a profit of $2.83 per share.
B) lost $2.83 per share because the option would not be exercised.
C) lost $1.5.66 per share.
D) made a profit of $5.66 per share.
Correct Answer:
Verified
Q62: The minimum value of a call option
Q63: Unlike the owner of a(n) _ contract,
Q64: A(n) _ gives the holder the right
Q65: A(n) _ gives the holder the right
Q66: How can a currency futures contract be
Q68: A(n) _ can be exercised only on
Q69: Ahmad bought call options on Home Depot
Q70: How can a gold futures contract be
Q71: Futures contracts differ from forward contracts in
Q72: The owner of a large, diversified stock
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