Annika Has Purchased Put Options on 1000 Shares of Amazon

question 56

Essay

Annika has purchased put options on 1000 shares of Amazon with a strike price of $270 per share.The option premium was $6.00 per share.
a.Compute Annika's profit or loss if the market value of Amazon's share is $280 at expiration.
b.Compute Annika's profit or loss if the market value of Amazon's share is $260 at expiration.
c.Compute Annika's profit or loss if the market value of Amazon's share is $272 at expiration.

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Definitions:

Human Life

The existence and experiences of an individual human being from birth to death, including physical, emotional, and intellectual aspects.

Poor Man

A term referring to an individual with limited financial resources, often used in broader discussions of socioeconomic status and disparity.

Postconventional

A stage in moral development where individuals make decisions based on internal principles, and societal rules are seen as flexible.

Unnecessary Human Suffering

Human distress or hardship that could be avoided or mitigated through alternative actions or policies.