Question about Put Options


I'm planning on purchasing a put option for a company I believe is going downhill. The option expires in 30 days, the underlying stock trades at $9.78, and am contracting at a strike price of $7.50. If I exercise the option at $7.5, will I make $750 or will I make $228?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *