Question 2 :Asaad sells a sell option to a supporter at a price of S 3 and an execution price of $ 60, if the share price on execution is equal to S 70, then = Assaad's Total Earned / Losses = Total Profits / Losses Achieved for Moayad

given that Assad has sold the sell option for 3$ so he receives an option premium of 3$ as income

as per the contract, the execution price is 60$

In case of sell option i.e put option technically , the supporter will exercise option if the share price on the contract end date is less than the contract rate. because if the share price is more in the market he will sell in the market and earn more money than the money he would get by exercising the option .

in the above case it was given that share price is equal to 70$ which is more than the contract execution price i.e 60$ so the supporter will not exercise the option and the option lapses

thus the Asaad will get profit of 3$

and the supporter or Moayad end up with loss of 3$