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An investor sells short 100 shares of XYZ stock at $62 and sells 1 XYZ Oct...

An investor sells short 100 shares of XYZ stock at $62 and sells 1 XYZ Oct 60 put @$6. The maximum potential gain is: (Show your work).

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ANSWER DOWN BELOW. FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

Maximum potential gain = (Stock Short Sell price-Strike Price) + Put option Premium.

= (62-60)+6

= $8

jeff jeffy answered 2 years ago
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