Kizspy | Question: 28
(Choose 1 answer)
(24973)Consider a stock priced at $30. There are put options available at exercise prices of 30 and a time to expiration of six months. The puts are priced at $2.89. There are no dividends and assume that all transactions consist of 100 shares or one contract (each includes 100 options).What is the maximum profit that the writer of a put can make?
A. $2,711
B. $289
C. $3,000
D. $3,289
E. none of these
