You buy a stock at $300 and buy an at-the-money 9-month European put option on the stock

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You buy a stock at $300 and buy an at-the-money 9-month European put option on the stock at a price of $15.

The continuously compounded risk-free interest rate is 5%.

Calculate your 9-month profit if the 9-month stock price is $280.

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Derivative Pricing

ISBN: 9780367734213

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Authors: Ambrose Lo

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Question Posted: Nov 22, 2023 08:17 AM

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You buy a stock at $300 and buy an at-the-money 9-month European put option on the stock

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Derivative Pricing

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