As a financial analyst, Gretchen Miller, has been analysing options on the common stock of Spirit Electronic Group, which is currently traded for $25.96. The three month put option for Spirit stock with the exercise price of $25 is currently traded at $0.65. Miller has been asked by her supervisor to determine the profit and the maximum loss on a protective put strategy. On the expiration date, if the stock price is $27.13, what figures should Miller report to her supervisor?
Select one:
