Question
In: Finance
You bought one of the $100 Apple put option contracts with a premium of $3.69. You...
You bought one of the $100 Apple put option contracts with a premium of $3.69. You kept your position until the expiration date, when Apple stock sells for $91.68, at that point you have a profit of $_____________ from this transaction. Recall that each contract includes 100 shares. Enter a negative number for losses. Enter your answer in the box below. Round your answer to two decimals.
Solutions
Expert Solution
The put option will be profitable when the stock price at expiry is less than the strike price of the option
Profit on put position = Number of shares * (Strike price - Stock price at expiration - Premium paid)
= 100*(100 - 91.68 - 3.69)
= $463
jeff jeffy answered 2 years agoRelated Solutions
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