Calculate the final profit


Consider a bearish option strategy of buying one $50 strike put for $7, selling two $42 strike puts for $4 each, and buying one $37 put for $2. All options have the same maturity. Calculate the final profit (P/L) per share of the strategy if the underlying is trading at $33 at expiration.

A. $1 per share

B. $2 per share

C. $3 per share

D. $4 per share

Solution Preview :

Prepared by a verified Expert
Finance Basics: Calculate the final profit
Reference No:- TGS0673676

Now Priced at $2 (50% Discount)

Recommended (94%)

Rated (4.6/5)