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Early February, AFred bought one contract of a put option on Mac Donalds for $2.18 per option with a strike price of $200.33. The contract
Early February, AFred bought one contract of a put option on Mac Donalds for $2.18 per option with a strike price of $200.33. The contract expires today so AFred exercises the option and then immediately sells the shares since the current spot price of the Mac Donalds shares is $190.00. The original cost for the buying the contract was $1, the cost for selling the shares is also $1 while exercising is free. What is AFred's profit?
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