The price of a stock currently is 67 you sell 10 put option, Ask an Expert

Finance

The price of a stock currently is $67. You sell 10 put option contracts on the stock with a strike price of $70 when the option price is $3.95 - $4.05

At the expiration the stock price is $65.50.

1. What is your PAYOFF? Show it algebraically as well as geometrically.

2. What is your profit/loss, P/L? Show it algebraically as well as geometrically.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92100105

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