A trader invests in facebook by buying 1000 shares in june, Ask an Expert

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A trader invests in Facebook by buying 1000 shares in June for $27 per share. She also buys 1000 put options for $5 each as insurance in case the stock drops sharply. The put options have a strike price of $27 and a maturity date of December. What is the gain or loss (meaning profit) if the spot price on December is:

A. $20 B. $27 C. $32 D. $37

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91771872

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