Multiple Choice
Joe sold a put option on ZZZ Corp. with an exercise price of $40 and a premium of $4. The option expires tomorrow and ZZZ is currently trading at $28 per share. What will be Joe's profit or loss per share if the option is exercised tomorrow and the price remains the same?
A) -$16
B) -$8
C) $8
D) $16
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q31: Only at the expiration date can an
Q54: A 10-year convertible bond with a 6%
Q55: If a convertible bond can be thought
Q56: The option to abandon a project investing
Q57: A share of stock is currently priced
Q58: IBM shares are currently selling at $75.
Q61: At what point is the payoff from
Q62: You purchased a stock for $36 a
Q63: Calculate the return on exercising a put
Q64: Why would bondholders be willing to pay