Question

Chelmsford stock is selling for $38 a share, the $38 puts are priced at $1.08, and the $38 calls are priced at $1.75. How much will you receive if you write ten $38 put option contracts?

		$286.00
		$3,800.00
		$480.00
		$1,080.00
		$2,240.00

Answer 1

Ans $ 1080.00

if you write ten $38 put option contracts, you receive premium on put option = $ 1.08 * 10 * 100

                                                                                                                             = $ 1080.00