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Consider an investor who has purchased a put option on XYZ Corporation with a strike price of $50. The investor paid a premium of $2
Consider an investor who has purchased a put option on XYZ Corporation with a strike price of $50. The investor paid a premium of $2 for the put option. What will be the investor's return (in percentage) if the market price of XYZ stock at expiration is $60? At what market price of XYZ stock at expiration will the investor break even?
Question 14 options: 400%; $52.00.
0.00%; $0.00.
500%; $52.00.
0.00%; $50.00.
-100%; $48.00.
100%; $50.00.
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