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3. The S&P 500 stock index option is currently trading at 1,200. The strike price is 1,200. You believe the stock market is going
3. The S&P 500 stock index option is currently trading at 1,200. The strike price is 1,200. You believe the stock market is going to decline. You decide to buy 20 stock index put option contracts for a total of $15,000 premium. If the stock index falls to 1,180, what is your profit or loss? Use equation: Option Payoff = max(0, X-S)* #ofcontracts* 100, Profit Total Payoff - Premium =
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
