单选题
An investor bought a 40 put on a stock trading at 43 for a premium of $1. What is the maximum gain on the put and the value of the put at expiration if the stock price is $41 ?
Maximum Gain on Put Value of the Put at Expiration
①A. $39 $0
②B. $4O $2
③C. unlimited $1
【正确答案】
A
【答案解析】The maximum gain on a long put is the strike price minus the premium, 40 - 1 = $39. The value at expiration is zero because the put is out-of-the-money.