Solved

Calculate the Value of a Short Put If the Exercise

Question 7

Multiple Choice

Calculate the value of a short put if the exercise price is $10.00,the premium is $1.50 and the spot price is $8.00,given V = P - max(X-S,0) .

A) -$1.50
B) -$0.50
C) $0.00
D) $0.50

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