hmmm. I will make an attempy. Pehaps someone else on this bd can fill in the gaps....|
I.E. Dow's at 8500. You buy say 2 76 puts at 3$ each: 2x3=$600. The closer the DOW avg gets to 7600, the more you make money or go toward being "in the money." "In the money" is when it actually hits 7600; from there it's mostly all profit.... December is now 10 months away. The closer Dec. gets, the less your dec 76 puts are worth. In options, TIME is a major factor. i.e. if you bought them at $3 today and tomorrow the dow hit 9000, yr options would be nearly worthless. BUT, if the dow fell to 8000 tomorrow, it would be seen as a positive and time is on yr side--plus closer to yr "in the money" target price of 7600.
In regard to can you "exercise them..." I have no idea. I don't see how... (Someoene have a better answer???) Myself, I rarely exercise options: remember, when you do, you don't get your initial investment back (i.e. the 600$). IF you did/ or were able to, you would pay 7600x3= 22,800 to own it.... then, if the dow hit 7500 you would make 100$ (7600-100 points=7500$).
If this is too simplistic or difficult, pardon me.
Now, in regard to prices: you are seeing several listed??? Where? There is only one 7600 put (etc) w/ one bid n ask. Go to dailystocks.com , enter symbol DJX. Then towards bottom on left, choose option ("very complete"). That will show you puts n calls. The DJX Dec 76 put is DJxxx.
Does this help?