The following diagram shows the value of a put option at expiration:
a. The expiration value of the short position in the put is $4 if the stock price is $76.
b. The expiration value of the long position in the put is 2$4 if the stock price is $76.
c. The long put has a positive expiration value when the stock price is below $80.
d. The value of the short position in the put is zero for stock prices equaling or exceeding $76.
This question was answered on: Jul 11, 2017
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