An investor believes that XYZ stock will decline in the upcoming 6 months and as such buys one put option at a strike price of $40. The stock is currently trading at $42 a share. The investor pays $3 a share for the premium. What is the investor’s maximum possible gain and maximum loss? What is the maximum gain and loss for the writer of the put?
Regent Papers is a library of common essays on high school, college, undergraduate and postgraduate topics. We have collected top papers from various institution, students and professors. The papers are based on common essay topics in all subjects.