Example: bankruptcy
Options – A Simple Guide
obligation to sell your Telstra shares for $3.60, if the option is exercised. For this you receive the premium of $0.10 per share ($100 for the contract). The following graph illustrates the profit or loss you would make at expiry: If at expiry, the share price is below $3.60, the option should expire worthless. Your TLS shares may have fallen
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