If the stock price becomes $70 at expiration, which option will yield the highest rate of return
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Question:
If the stock price becomes $70 at expiration, which option will yield the highest rate of return (=profit / cost)?
put option with $70 exercise price, cost = $4
put option with $80 exercise price, cost = $8
put option with $90 exercise price, cost = $15
underlyingstock,cost=$80
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