question archive You buy 3 European put option contracts on a share
Subject:FinancePrice: Bought3
You buy 3 European put option contracts on a share. The premium for one contract is $5. The strike price is $10.5. If terminal price of the underlying share – $9.5 or $10.5$ or 12.5$ (by the maturity). 1) What will be the BEP? 2) What is the payoff for each of the terminal price and NET result?