feetfailmenot·5 anni fa·discussI gives you $1K today. In exchange, we agree now, that in two month, I can buy your car for $10K if I want to.I just bought a 2-month expiry put option at a strike of $10k on your car.Two month later, I check the resell value for your car.If it's more than $10k, let's say 13, I buy yours at 10 and resell it at 13K. I won 3-1=$2kIf it's less that $10k, I just pass, I lost $1k.
I just bought a 2-month expiry put option at a strike of $10k on your car.
Two month later, I check the resell value for your car.
If it's more than $10k, let's say 13, I buy yours at 10 and resell it at 13K. I won 3-1=$2k
If it's less that $10k, I just pass, I lost $1k.