Question
Answer the question below using the following information: Price of Stock $40.00 Exercise Price of 3-month Put $40.00 Market Price of Put $5.00 If at
Answer the question below using the following information:
| Price of Stock | $40.00 |
| Exercise Price of 3-month Put | $40.00 |
| Market Price of Put | $5.00 |
If at expiration of the put option the price of the stock is at $32.00, what would be the % return earned or lost by a buyer of the put option?
Group of answer choices
25%
40%
60%
0%
-100%
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
12th Edition
1260772160, 978-1260772166
