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An investor holds 200 shares of Company Z, with a current trading price of $26 per share. The investor believes that the stock price is

An investor holds 200 shares of Company Z, with a current trading price of $26 per share. The investor believes that the stock price is likely to go down, therefore he purchased two put option contracts on Company Z’s shares. The put options have a strike price of $24 and a premium of $1.50. Determine the investor’s profit or loss if the stock price falls to $20.

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