what is the payoff for a put option with a strike price of $20 if...

80.2K

Verified Solution

Question

Accounting

what is the payoff for a put option with a strike price of $20 if the price of the underlying stock at expiration is $18?

Suppose you own a call option on a stock with a strike price of $20 that expires today. The price of the undelying stock is $15. If you exercise the option and immediately sell the stock? Are you gonna earn or loss and how much?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students