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You purchase one IBM March 120 put contract for a put premium of $10. The maximum
You purchase one IBM March 120 put contract for a put premium of $10. The maximum profit that you could gain from this strategy is .
A. $120
B. $1,000
C. $11,000
D. $12,000
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B. $1,000
C. $11,000
D. $12,000
robert7248
4,6(88 marks)
$11,000
Explanation:
One IBM March 20 put contract is purchased at a premium of $10
Therefore the maximum profit that will be gained from this strategy can be calculated as follows
= 100(120-10)
= 100(110)
= 11,000
Hence the maximum profit is $11,000
babyissy2016
4,6(47 marks)
Why would anyone benefit from being lazy? obvious answer is false.
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