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A stock is currently trading at $50. A one-year at-the-money put costs $10. The stock price at the end of one year can be equally

A stock is currently trading at $50. A one-year at-the-money put costs $10. The stock price at the end of one year can be equally likely to be one of the following three values: {20, 50, 80}. What is the expected one-year return of a protective put portfolio? (a) -16:67% (b) 0% (c) +16:67% (d) +50%

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