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Finger [1]
3 years ago
11

You purchase one IBM March 120 put contract for a put premium of $10. The maximum profit that you could gain from this strategy

is _________.
A. $120
B. $1,000
C. $11,000
D. $12,000
Business
1 answer:
aev [14]3 years ago
6 0

Answer:

$11,000

Explanation:

One IBM March 20 put contract is purchased at a premium of $10

Therefore the maximum profit that will be gained from this strategy can be calculated as follows

= 100(120-10)

= 100(110)

= 11,000

Hence the maximum profit is $11,000

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