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CFA Level I Forward Commitment and Contingent Claim Features and Instruments question

Derivatives / Forward Commitment and Contingent Claim Features and Instruments

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Forward Commitment and Contingent Claim Features and Instruments sample question

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Derivatives

Forward Commitment and Contingent Claim Features and Instruments

An investor buys 100 shares of a stock at USD 62.00 per share and simultaneously buys one put option covering 100 shares with an exercise price of USD 60.00, paying a premium of USD 2.50 per share. At the option's expiration, the stock trades at USD 54.00. The investor's total profit per share on the combined position is closest to:

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