A Q2. On October 25, 2023, McDonald's (MCD) stock is trading at $258 per share. The price of a put option on MCD expiring in 3 months is $5.8 with exercise price X = $250 and $9.5 with X =$260 - You think that shares of MCD will fall in price in the immediate future, and you want to speculate on the stock. Given the range of possible stock price of MCD in 3 months calculate the dollar profits and percentage returns (which equals to dollar profits / total costs) of the following two investments separately: (1). Purchasing 100 put options on MCD with an exercise price of $250 (2 points) (2). Purchasing 100 put options on MCD with an exercise price of $260 (2 points)

Q2. On October 25, 2023, McDonald's (MCD) stock is trading at $258 per share. The price of a put option on MCD expiring in 3 months is $5.8 with exercise price X=$250 and $9.5 with X =$260 You think that shares of MCD will fall in price in the immediate future, and you want to speculate on the stock. Given the range of possible stock price of MCD in 3 months calculate the dollar profits and percentage returns (which equals to dollar profits / total costs) of the following two investments separately: (1). Purchasing 100 put options on MCD with an exercise price of $250 (2 points) (2). Purchasing 100 put options on MCD with an exercise price of $260 ( 2 points) Q2. On October 25, 2023, McDonald's (MCD) stock is trading at $258 per share. The price of a put option on MCD expiring in 3 months is $5.8 with exercise price X=$250 and $9.5 with X =$260 You think that shares of MCD will fall in price in the immediate future, and you want to speculate on the stock. Given the range of possible stock price of MCD in 3 months calculate the dollar profits and percentage returns (which equals to dollar profits / total costs) of the following two investments separately: (1). Purchasing 100 put options on MCD with an exercise price of $250 (2 points) (2). Purchasing 100 put options on MCD with an exercise price of $260 ( 2 points)