Wealth over the three-month period

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Imagine that you purchased 100 shares of Apple stock for $100 each. You are confident that the stock will go up in price over the next three months. Just to be safe, though, you buy put options for your 100 shares at a striking price of $95. The cost of the put options is $2 per share, or a total of $200. As it turns out, the price of the Apple stock goes up to $104 per share. Including the cost of the put options, what was your total gain or loss in your wealth over the three-month period?

Reference no: EM131152413

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