Based upon the totality of your option sale and assignment


Assume you sold a put on XYZ with a 17 strike price and a July expiration. At the time, XYZ was trading at $17.35/shr. The put earned $2.55. Close to expiration, the put traded down below $1 as the shares contiuned to trade above $17. You elected not to buy it back, and planned on letting it expire worthless. However, in July just beofre expiration date of your put option, XYZ shares tanked based on the announcement of an SEC investigation. Upon expiration date, you were assigned 100 shares of XYZ at 17. It closed that same day at $15.75. Based upon the totality of your option sale and assignment, are you at profit or loss in your new postion in XYZ?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Based upon the totality of your option sale and assignment
Reference No:- TGS02846272

Expected delivery within 24 Hours