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Dorothy Santosuosso does a lot of irwesting in the stock market and is a frequent user of stock-index options. She is convinced that the market

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Dorothy Santosuosso does a lot of irwesting in the stock market and is a frequent user of stock-index options. She is convinced that the market is about to undergo a broud retrest and has decided to buy a put option on the SAP 100 index. The put carries a strike price of 913 and is quoted in the financial press at \$14.59. Although the S8P index of 100 stocks is currenty at 898.33, Dorothy thinks it will drop to BS1 by the expiration date on the option. How much profit will she make, and what will be her holding period retiarn if she is right? How much will she lose if the SsP io0 goes up (rather than down) by 35 points and reaches 933 by the date of expiration? The profit from this investment would be t (Round to the nearest cent)

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