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A company stock is currently selling for $180 per share. you take a short position in a put option contract on the company stock with
A company stock is currently selling for $180 per share. you take a short position in a put option contract on the company stock with a strike price of $170. the cost (premium) of the put option is $2 per share. which of the following statements is true?
a) the stock price could fall and you can still earn a positive profit
b) you are betting that the stock price falls below $180
c) your breakeven stock price is $172
d) if the option is exercised at maturity, you will earn a negative profit
e) both a and c are true
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