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A three-month European put option with a strike of price $13 costs $0.4. The price of the underlying asset is $15.8. An investor forms a
A three-month European put option with a strike of price $13 costs $0.4. The price of the underlying asset is $15.8. An investor forms a covered put strategy. Suppose that at maturity, the price of the underlying asset is $11.5. What is the profit/loss per share from this strategy?
a.
$4.70
b.
$-4.70
c.
$-3.20
d.
$-8.30
e.
$3.20
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