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A trader sells 5 American put option contracts (each contract has 100 shares) on Romulus. The exercise price is $70 when the option price is
A trader sells 5 American put option contracts (each contract has 100 shares) on Romulus.
The exercise price is $70 when the option price is $4.
The options were exercised when the stock price reached $69.
What is the traders net profit or loss?
Group of answer choices
loss of $1,500
loss of $500
gain of $1,500
gain of $1,000
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