The options are exercised when the stock price is 69 what


Yum Brands stock price is $67. A trader sells 5 put option contracts (100 shares each) on the stock with a strike price of $70 when the option price is $4. The options are exercised when the stock price is $69. What is the trader's net profit or loss? What is the answer and the rationale for the answer?

Solution Preview :

Prepared by a verified Expert
Business Management: The options are exercised when the stock price is 69 what
Reference No:- TGS02646546

Now Priced at $10 (50% Discount)

Recommended (94%)

Rated (4.6/5)