Elizabeth bennet purchased a put option on euros for 022, Financial Management

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Elizabeth bennet purchased a put option on euros for 022

Elizabeth Bennet purchased a put option on Euros for $.022 per unit. The strike price was $1.3550 and the spot rate at the time the Euro put option was exercised was $1.2800. Assume there are 100,000 units in a Euro option. What was Elizabeth’s net profit on the option?

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Financial Management: Elizabeth bennet purchased a put option on euros for 022

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Financial Management: Elizabeth bennet purchased a put option on euros for 022

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