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A stock is currently priced at $42.27 a share. The six-month puts are priced at $0.80 and have a $42.50 strike price. Sarrah owns 1,000
A stock is currently priced at $42.27 a share. The six-month puts are priced at $0.80 and have a $42.50 strike price. Sarrah owns 1,000 shares of the stock and wants to sell it for the best possible price. Sarrah should:
a. Sell the shares directly at the market price.
b. Sell 10 puts and then exercise them immediately.
c. Buy 1 put and then exercise it immediately.
d. Sell 1 put and then exercise it immediately.
e. Buy 10 puts and then exercise them immediately.
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