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1. Consider a put option to sell 10 shares for $30 per share. (1) Write the payoff function of the put option at maturity. (2)
1. Consider a put option to sell 10 shares for $30 per share. (1) Write the payoff function of the put option at maturity. (2) Now, the firm announced 3-for-1 stock split. How should the put option terms be adjusted after the stock split? (3) Write the payoff function of the put option with the adjusted terms, and compare it with the result of (1)
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