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A put option on Iowa stock specifies an exercise price of $55. Today, the stock's price is $52. The premium on the put option is
A put option on Iowa stock specifies an exercise price of $55. Today, the stock's price is $52. The premium on the put option is $6. Assume the option will not be exercised until maturity, if at all. Complete the following table for a speculator who purchases the put option and currently does not own the stock). ASSUMED STOCK PRICE AT NET PROFIT OR LOSS PER THE TIME THE PUT OPTION SHARE TO BE EARNED BY IS ABOUT TO EXPIRE THE SPECULATOR $40 45 49 53 58 63 67
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