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Assume that an investor buys a put option on ABC shares with an exercise price of $42, and pays a premium of $2.49 per share.
Assume that an investor buys a put option on ABC shares with an exercise price of $42, and pays a premium of $2.49 per share. Each option is for 9 shares. If 1 month later the share price of ABC is $52.73 what is the (intrinsic) profit or loss made by the investor?
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To calculate the intrinsic profit or loss made by the investor on the put option we need to consider ...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
