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  3. the current price of a stock is $46.68. a trader s

The current price of a stock is $46.68. A trader sells 159 put options on...

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Accounting

The current price of a stock is $46.68. A trader sells 159 put options on this stock with a strike price of $40 when the option price is $4.31. The options are exercised when the stock price is $36.52. The trader's net profit or loss is equal to
Question 3Answer
a.
$-1238.61
b.
$-131.97
c.
$131.97
d.
$0.83
e.
$-0.83

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