Joe sold a put option on ZZZ Corp.with an exercise price of $40.The option is about to expire and ZZZ stock is currently trading at $28 per share.What is the value of Joe's position?
A) $12
B) −$12
C) $8
D) $16

Name: Joe sold a put option on ZZZ Corp.with an exercise price of $40.The option is about to expire and ZZZ stock is currently trading at $28 per share.What is the value of Joe's position? A) $12 B) −$12 C) $8 D) $16
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Question

Quizplus · Accepted Answer

Value of Joe's Position = $40 − $28 = −$12

Joe Sold a Put Option on ZZZ Corp