Calculate the Profit Per Share for an Investor That Exercises

question 85

Multiple Choice

Calculate the profit per share for an investor that exercises a put option with a strike price of $60 when the stock is selling for $46 and the premium for the put option was $4.

• A)($14)
• B)($10)
• C)$10
• D)$18 Value of put at expiration = exercise price - stock price
• = $60 - 46
• = $14
• Total profit = value of put option - premium paid

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