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Argosy University/ Phoniex University/
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Phoniex University
Oct-2001 - Nov-2016
The following diagram shows the value of a put option at expiration:

Ignoring transaction costs, which of the following statements about the value of the put option at expiration is true?
The expiration value of the short position in the put is $4 if the stock price is $76.
www.mhhe.com/bkm
The expiration value of the long position in the put is 2$4 if the stock price is $76.
The long put has a positive expiration value when the stock price is below $80.
The value of the short position in the put is zero for stock prices equaling or exceeding $76.
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