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AFP Certified Treasury Professional CTP Question # 371 Topic 14 Discussion

AFP Certified Treasury Professional CTP Question # 371 Topic 14 Discussion

CTP Exam Topic 14 Question 371 Discussion:
Question #: 371
Topic #: 14

A put option on a company's stock has an exercise price of $20. On the delivery date, the stock is trading at $24 per share. What should the investor who has paid $2 for the option do?


A.

Not exercise the option and lose $2.


B.

Not exercise the option and lose $6.


C.

Exercise the option and gain $2.


D.

Exercise the option and gain $4.


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