Question

Suppose you buy a put option contract on October gold futures with a strike price of $$\$ 1,400$$ per ounce. Each contract is for the delivery of 100 ounces. What happens if you exercise when the October futures price is $$\$ 1,380$$ ? 

   Suppose you buy a put option contract on October gold futures with a strike price of $$\$ 1,400$$ per ounce. Each contract is for the delivery of 100 ounces. What happens if you exercise when the October futures price is $$\$ 1,380$$ ?
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Options, Futures, and Other Derivatives
Options, Futures, and Other Derivatives
John C. Hull 10th Edition
Chapter 18, Problem 8 ↓

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You have bought a put option contract on October gold futures with a strike price of $$\$ 1,400$$ per ounce. This means that you have the right, but not the obligation, to sell 100 ounces of gold at a price of $$\$ 1,400$$ per ounce.  Show more…

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Suppose you buy a put option contract on October gold futures with a strike price of $$\$ 1,400$$ per ounce. Each contract is for the delivery of 100 ounces. What happens if you exercise when the October futures price is $$\$ 1,380$$ ?
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