5b. You sell a put option on ROLL stock with an exercise price of $97. Today, the stock’s price is $95. The premium on t

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answerhappygod
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5b. You sell a put option on ROLL stock with an exercise price of $97. Today, the stock’s price is $95. The premium on t

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5b. You sell a put option on ROLL stock with an exercise price of $97. Today, the stock’s price is $95. The premium on the put option is $2. Just before expiration, the stock’s price is $99. Will the option be exercised? What is your net profit or loss? What is the break-even price? (show your work)
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