问题
单项选择题
The current market price of National Tire (NT) is $ 35. Fran Wilson writes 6-month put options on NT with strike price $ 30, coveting 400 shares (i. e. 4 contracts), for which she receives a total premium of $1200. What is the expiration day value of Fran’s written put position, if NT is priced at $ 25 at expiration（）
A. -$ 2000.
B. -$ 800.
C. $ 2000.
答案
参考答案：A
解析：
The expiration payoff on a short put is given by -MAX (0, X -ST)=-MAX (0,30-25)=-$5 per option. The written puts are worth -$ 5 each, or -$ 2000 in total. Note that the question does NOT ask for the profit/loss-the profit/loss includes the initial premium amount, while the expiration day value does not.