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3. Yum Brands stock price is $67. A trader sells 5 put option contracts (100 shares each) on the stock with a strike price of
3. Yum Brands stock price is $67. A trader sells 5 put option contracts (100 shares each) on the stock with a strike price of $70 when the option price is $4. The options are exercised when the stock price is $69. What is the trader's net profit or loss? What is the answer and the rationale for the answer? Thanks :)
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