Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you have purchased a put option on pfizer common s

You have purchased a put option on Pfizer common stock. The option has an exercise...

70.2K

Verified Solution

Question

Finance

You have purchased a put option on Pfizer common stock. The option has an exercise price of $47 and Pfizers stock currently trades at $49. The option premium is $0.80 per contract. a. What is your net profit on the option if Pfizers stock price does not change over the life of the option? b. What is your net profit on the option if Pfizers stock price falls to $44 and you exercise the option?

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

Q

True or false If false explain clearly in complete sentences and with all arguments why...

Physics
Q

The balance in an investment account years t after the account is opened is given by...

Basic Math
Q

Question 4 Which of the following time sequence is a weak stationary? Justify your answer! zt =at,whereat ∼i.i.d.(0,1)forallt∈R. zt...

Statistics
Q

What are the goals, advantages, and limitations of designing toys for cerebral palsy therapy? Please discuss...

Biology
Q

Visit the following links, associated with the television show Monsters Inside Me, and then complete the assignment...

Medical Sciences
Q

5. A power cycle receives energy QH by heat transfer from a high temperature energy source...

Mechanical Engineering
Q

Four charges q q q q are placed on circumference of a circle of radius...

Physics
Q

How many arc degrees are in the minor arc b 65 to O 32 5...

Geometry
Q

In a recent year, the Better Business Bureau settled 75% of complaints they received. (Source:...

Basic Math
Q

p exceeds 24 24 38 0 38 25

Algebra
Q

Molly Mocha employs one college student every summer in her coffee shop. The student works...

Accounting
Q

Laurel Enterprises expects earnings next year of $3.69 per share and has a 30% retention...

Finance