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Assume that an investor buys a put option on ABC shares with an exercise price of $45, and pays a premium of $1.18 per share.
Assume that an investor buys a put option on ABC shares with an exercise price of $45, and pays a premium of $1.18 per share. Each option is for 7 shares. If 1 month later the share price of ABC is $50.88 what is the (intrinsic) profit or loss made by the investor?
(enter as a figure to 2 decimal places, without dollar sign)
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