You are the holder of a put option contract over zyx ltd, Ask an Expert

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You are the holder of a put option contract over ZYX Ltd shares, which has an exercise price of $7.50. Assume you paid an option price of $0.25 per share, and you will hold the contract to expiration. Indicate whether or not you would exercise the contract if the expiration date price of ZYX Ltd shares was: (a) $7.00, (b) $7.50 or (c) $8.00. Calculate the total dollar amount of profit or loss in each scenario.

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Financial Management, Finance

Category:- Financial Management
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