Question 1: Put options You own a put option on Ford stock with a strike price of $10. The option will expire in exactly
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Question 1: Put options You own a put option on Ford stock with a strike price of $10. The option will expire in exactly
Question 1: Put options You own a put option on Ford stock with a strike price of $10. The option will expire in exactly six months' time. If the stock is trading at $8 in six months, what will be the payoff of the put? b. If the stock is trading at $23 in six months, what will be the payoff of the put? Draw a payoff diagram showing the value of the put at expiration as a function of the stock price at expiration. a. c.