Answer:
300
Explanation:
Given that,
Strike price of selling a put option on S&P 500 index = 3,300
S&P 500 index on option expiration date = 3,000
Put option is defined as the right but not the obligation of the holder to sell the specified asset at a specified price at a future date. The option is exercised if the strike price of the option is higher than the price at a expiration date.
Therefore, the payoff is as follows:
= Strike price - Market price
= 3,300 - 3,000
= 300
