What will be the profit of the put

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Reference no: EM131878285

Please show all calculations. Assume that you own a put option on Xeta stock with a strike price of $20. when you bought the put, it costs to you was $4. The option will expire in exactly six months' time.

a) if the stock is trading at $18 in six months, what will be the payoff of the put? what will be the profit of the put?

b) if the stock is trading at $33 in six months, what will be the payoff of the put? what will be the profit of the put?

Reference no: EM131878285

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