What would be payoff per share to james on expiration day

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Reference no: EM131558518

Suppose James writes a put option on Facebook stock with the exercise price K = $140 at price of P0 = $12 per share today and it expires on October this year. If the stock price turns out $S_T = $150 on the expiration date, what would be the payoff per share to James on the expiration day? Assume there was no dividend or early exercise of the option. Type your answer without $ as a numerical value. For example, type -34 if you think James will pay $34 per share to the option buyer.

Reference no: EM131558518

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