Hello,
I’m new to this forum, and new to options. I’m reading a book on options, but I am confused by something I am seeing in the market:
Current selling price of stock: $20
Strike price of stock: $24
Option expiration date: Jan 19, 2018
Price of put option (the “ask”): $0.90
My understanding of a put is this:
It gives you the right to sell the stock to the put issuer, at the strike price, on or before the expiration date.
Therefore, these numbers seem strange. It looks like I can…