Question
3 months ago, one stock of Company X was worth $78 in the market. At that moment, an investor thought that the stock could go
3 months ago, one stock of Company X was worth $78 in the market. At that moment, an investor thought that the stock could go down, and bought European put options over Company X's stock, with a strike of $68 and maturity of 3 months, for $3.12?
If the investor purchased 25 European puts, what was the net return on the option position if the stock price was $56.51 at the option's maturity?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
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