Calculate the Profit Per Share for an Investor That Exercises

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

Correct Answer:

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