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Homework answers / question archive / An American Put option expiring 6 months from now on a certain stock has a strike price of $100 and the premium paid for the put was $20
An American Put option expiring 6 months from now on a certain stock has a strike price of $100 and the premium paid for the put was $20. Today, the stock price fell to $20 per share. Please mark the only incorrect statement about the put option.
a. 
The breakeven point for the put option is $80 

b. 
The maximum loss for the buyer of the put will be $20 

c. 
The maximum net loss for the writer of the put would be $100 

d. 
If the buyer were to exercise the put today, its profit would amount to $60 
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