You own 300 shares of stock which you would like to have the right to sell at $40 a share.The 40 call option is quoted at $0.35 bid,$0.40 ask.The 40 put is quoted at $0.45 bid,$0.50 ask.How much will it cost you to obtain the right to sell all of your shares at $40 a share?
A) $135
B) $50
C) $150
D) $105
E) $75

Question

Quizplus · Accepted Answer

Put option premium = 300 × $0.50 = $150

You Own 300 Shares of Stock Which You Would Like