Answer : C. $400 of short term capital loss
Explanation
1.put option is a formal agreement between the seller and the buyer in the derivatives market
2. Put option gives right to the holder(owner) but not obligation to sell.
3. The holder of the put option sell the put option on or before expiry date to the specified party
4. The holder of the put allowed to sell his put for strike price(agreed price) on or before expiry date (maturity date)
5 . If the put option expires it is treated as short term capital loss ( these are written for one or less than year)
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