2 On 1 March the ordinary shares of Gaymore plc stood at 469p. The traded options market...

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2 On 1 March the ordinary shares of Gaymore plc stood at 469p. The traded options market in the shares quotes April 500p puts at 47p. If the share price falls to 450p, how much, if any, profit would an investor make? What will the option be worth if the share price moves up to 510p?

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