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Posted on Oct 03, 2024

Assume an investor buys a put option on XYZ stock with a strike price of $100 for $5 when the stock is trading for $105.

a) What is the investor's break-even stock price? Enter your answer as a number with no dollar sign.

b) What is the investor's maximum possible gain per share? Enter your answer as a number with no dollar sign.

c) What is the investor's maximum possible loss per share? Enter your answer as a number with no dollar sign.

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