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A speculator purchased a put option with an exercise price of $56 for a premium of $10. The option was exercised a few days later
A speculator purchased a put option with an exercise price of $56 for a premium of $10. The option was exercised a few days later when the stock price was $44. What was the return to the speculator?
a. -20 percent
b. 120 percent
c. -100 percent
d. 20 percent
please explain with steps
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