Janet paid $250 to buy one put option with a strike price of $35. What is the ma

Question

Janet paid $250 to buy one put option with a strike price of $35. What is the maximum profit Janet can earn on her option contract?

Janet's DJIA Index option had a strike price of 125. When she exercised the option, the Dow was at 13,050. What did Janet receive from the writer of the contract?

Janet has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 gallons. Initial margin is $6,075; maintenance margin is $4,500. If the price of heating oil is $2.15 when the contract expires, Janet's profit or loss

Explanation / Answer

1. profit potential is unlimited in Option contract , the only loss or risk is to the extent of amount paid ($250) to buy contract.

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.