Calculate Option Profit And Loss
Series 7 · Flashcards
SERIES 7 · FLASHCARDS
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QUESTION
What is the maximum loss for a long put (per share) at expiration?
QUESTION
What is the formula for a short call break-even price at expiration?
QUESTION
What is the total dollar P/L for
1
1
1
listed option contract given per-share P/L?
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ANSWER
Total P/L
=
(
per-share P/L
)
×
100
\text{Total P/L} = (\text{per-share P/L})\times 100
Total P/L
=
(
per-share P/L
)
×
100
. Each option contract covers 100 shares, so total profit or loss scales by multiplying per-share amount by 100.
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