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A trader invests in Facebook by buying 1000 shares in August for $27 0 per share. She also buys 1000put options for $5 each as

A trader invests in Facebook by buying 1000 shares in August for $27

0 per share. She also buys 1000put options for $5 each as insurance in case the stock price drops sharply. The put options have strike price of $27

0 and a maturity date inDecember. What is the profit or loss if spot price on the maturity date is: a) $200, b) $275, c)$320 and d)

$370? Show all calculations.

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