Question
1)Suppose you purchase 7 put contracts on Testaburger Co. stock.The strike price is $36.25, and the premium is $1.50. If, at expiration, the stock is
1)Suppose you purchase 7 put contracts on Testaburger Co. stock.The strike price is $36.25, and the premium is $1.50. If, at expiration, the stock is selling for $31per share, what are your put options worth? What is your net profit?
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
