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Writing Put Options. A put option on Indiana stock specifies an exercise price of $23. Today...

  1. Writing Put Options. A put option on Indiana stock specifies an exercise price of $23. Today the stock’s price is $24. The premium on the put option is $3. Assume the option will not be exercised until maturity, if at all. Complete the following table: 5 MARKS

Assumed Stock Price at the Time                             Net Profit or Loss per Share to Be Earned

the Put Option Is About to Expire                           by the Writer (Seller) of the Put Option           

$20

$21

$22

$23

$24

$25

$26

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