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.

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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 ago

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