final q16.PNG Suppose you buy 40 February 100 put option co…
final q16.PNG Suppose you buy 40 February 100 put option contracts. On the expiration date, Hendreeks is selling for $87.15 per share. (Each contract entitles the option buyer/owner to 100 shares of the underlying stock upon expiration.) a. What is the cost of contracts? (4pts) b. How much is the option payoff per share? (4pts) c. How much is your options investment worth? (i.e., What is the option terminal value? (4pts) d. What is your net profit? (4pts) e. What is your maximum gain? (4pts)