Today is the expiration day of 36 put option contracts on XYZ stock that you wrote...

Today is the expiration day of 36 put option contracts on XYZ stock that you wrote three months ago. The premium was $2.24/share. The exercise price is 35/share. If the price of the stock today is $33/share, calculate the payoffs from your position. Calculate the profits from your position.

Expert Solution

jeff jeffy answered 7 months ago

You wrote(sold short) 1 put option when the put option price was $2, the underlying stock...

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Draw the payoff picture at expiration for a long position in a put option that has a premium of $3.50 and a strike price of $60.

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