Joe Sold a Put Option on ZZZ Corp

question 88

Multiple Choice

Joe sold a put option on ZZZ Corp.with an exercise price of $40.The option expires tomorrow and ZZZ is currently trading at $28 per share.The option premium was $4 per share.What is Joe's profit <loss> per share if the option is exercised tomorrow?

• A)($16)
• B)($8)
• C)$8
• D)$16

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