Ask Question
27 December, 15:36

Tom Gettback buys 100 shares of Jobnson Walker stock for $87.00. per share and a 3-mont Johnson Walker put option with an exercise price of $105.00 for $20.00 What is Tom's dollr gainloss if at expiration the stock is selling for $105.00 per share?

a. $1000 gain

b. $200 loss

c. $1000 loss

d. $200 gain

c. None of the above

+4
Answers (1)
  1. 27 December, 18:23
    0
    b. $200 loss is the correct option

    Explanation:

    =100 * (105-87) + (MAX (105-105,0) - 20) * 100

    =-200
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Tom Gettback buys 100 shares of Jobnson Walker stock for $87.00. per share and a 3-mont Johnson Walker put option with an exercise price of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers